How they work and who can get them
The new Government Agency Mortgage Regulation has introduced several new features as regards the granting of mortgage loans at favorable conditions in favor of employees or pensioners. These include the possibility of applying for a joint Government Agency mortgage.
In fact, article 4 of the Government Agency Mortgage Regulations provides for the possibility for married couples to obtain joint mortgage loans. However, this option is only accessible to those who meet all the requirements set by Social Institute for the granting of Government Agency loans.
To obtain a joint Government Agency mortgage, both spouses must therefore be registered in the Unitary Management of credit and social benefits. This is the credit fund through which Government Agency mortgages and loans are granted on favorable terms.
Applicants can be both retirees and civil servants in service activities. In this second case, the presence of an indefinite-term employment contract is required. In any case, for the purposes of access to credit, a seniority of enrollment in the unitary Management of not less than one year is essential.
It is necessary to specify that if as indicated in the Government Agency Mortgage Regulations, only married couples can apply for a joint mortgage. Cohabitants are therefore excluded from the audience of applicants.
Consequences of the joint mortgage
But what does joint mortgage involve? There are no variations regarding the maximum financeable sum, which is defined on the basis of the purpose of the loan. Loans for the purchase of the house foresee a maximum amount of 300 thousand USD.
The amounts that can be financed for mortgages for the purpose of restructuring and the purchase of garages or parking spaces have been reduced. In the first case we have a maximum amount equal to 40% of the real estate value (up to a maximum of 150 thousand USD), while the mortgages for the purchase of a garage or a parking space to be used as a property of the house we have a maximum amount equal to 75 thousand USD.
The repayment takes place in 10, 15, 20, 25 or 30 years and the rate can be fixed or variable. The only difference between mortgages in the name of a single person and an Government Agency mortgage jointly shared with two spouses is represented by the fact that in this case the amount paid is shared between the two spouses.
Joint mortgage if only one spouse is registered in the Credit Fund
However, the question is different when only one of the spouses is registered with the Social Institute unit management. in this case, it is not possible to co-register the mortgage, but the non-registered spouse intervenes in the loan contract as a third party, mortgage giver.
In the event that the mortgage is required for the purchase of a home or garage, the deed of sale can affect both spouses. The issue is different for mortgages aimed at renovating the home.
In this case, the non-registered spouse intervenes in the contract only if the property subject to a loan is owned by both spouses. If the house is registered only to the non-registered spouse, the financing cannot be obtained.
As regards the loan application, we refer you to our analysis on the Government Agency mortgage application.