Coronavirus first home mortgage suspensions in Italy

With Italy's "Cura Italia" (cure Italy) decree law due to the coronavirus and in the midst of economic uncertainty, several measures have been introduced to help vulnerable and money stretched residents affected by the pandemic, including the possibility to request the suspension of first home mortgage payments for those citizens who have found themselves in economic difficuties. Before applying for this mortgage suspension, here are 10 important factors you should consider:

1. Timing: regarding the actual suspension of mortgage instalments, we're not talking about a quick turnaround. After sending the application you have 10 days to complete the documentation; 15 days for the preliminary investigation by CONSAP financial services, 5 working days for investigations by the bank and another 35-40 days for the actual suspension of the installment. Take note: the moratorium comes into effect when the request is sent and not when the actual suspension of payments starts.
2. Suspension of unpaid instalments up to 90 days: the moratorium includes non-payment up to 90 days before the date of submission of the request, i.e. for the three months preceding the request.
3. Loans already suspended are included: you can also request suspension of installments for a loan for which suspension had already been requested in the past and this will not count in the 18 months, always if and when you have been in payment for at least three months.
4. Bank membership in the Fondo nazionale Gasparrini: to access the suspension it is necessary that the same bank has joined the Fondo nazionale Gasparrini (the Italian solidarity fund for mortgages). 
5. Lockdown procedures: to avoid travelling during this emergency period, those applying for the suspension are allowed to send the online form to the bank and the bank operator, who may be working remotely, can send it to CONSAP, leaving box 2 blank, taking care to enter the relevant data in the notes field of the application. In any case, the employer's certification or self-declaration on turnover must be attached.
6. Mandatory indication of the duration of the suspension: make sure you indicate the duration of the suspension requested, otherwise it will be rejected. In case of uncertainty, it is better to indicate a shorter duration (6 months) and then renew the application.
7. Suspension for other types of mortgages: this also applies for the suspension of mortgages up to 250 thousand euros contracted in addition to the purchase of a first home for restructuring and liquidity.
8. Considering the payment of interest: the borrower is responsible for 50% of the interest portion (the collection of which CONSAP has asked to postpone at a later date), therefore it is always better to consider whether it is advisable to suspend, renegotiate or subrogate.
9. Extension of the suspension: with subsequent corrections to the decree, mortgages stipulated less than a year ago were also included in the moratorium and the suspension was extended to sole proprietorships and artisans.
10. Excluding loans taken out with the Guarantee Fund (Fondo di Garanzia): for the moment and subject to subsequent revisions by the government, loans taken out with recourse to the National Guarantee Fund for first home loans are excluded.

Article seen at: Mutui prima casa, 10 cose da sapere prima di chiedere la sospensione delle rate (Sole 24 ore)