GLOPRAGlobal Property Radar

Italy mortgage rates: 3.99% all-in on new home loans, August 2026

The annual rate of charge on new Italian home loans reached 3.99% in August 2026, up from 3.81% in July, raising the cost of financing a purchase in Italy.

The facts

  • The annual percentage rate of charge on new loans to households for house purchase stood at a provisional 3.99% in August 2026, against 3.81% in July 2026, in the monthly money and banking release of Banca d'Italia.
  • The share of those loans with an initial rate-fixation period of up to one year fell to 23.9%, from 29.0% the month before.
  • A separate composite indicator of the cost of household mortgage credit, published in the same release, reads 3.52% for April 2026, 3.54% for May, 3.54% for June, 3.49% for July and a provisional 3.58% for August 2026. The release names it as a different series and refers its method to a separate methodological note.
  • Lending to households grew 2.9% over twelve months, after 2.6% the previous month.
  • The rate of charge on new consumer credit rose to a provisional 10.78%, from 10.38% the month before.
  • Rental income in Italy can be taxed at a flat 21% under the cedolare secca substitute tax, set out in article 3 of Legislative Decree 23/2011, and Glopra puts total transaction costs at about 14% of the purchase price.

What it means for your money

  • Financing is dearer. A new Italian home loan cost 3.99% in August 2026, up from 3.81% in July 2026.
  • A buyer entering now meets a market where the short fix is shrinking: the share fixed for up to one year fell to 23.9% from 29.0%, so a larger share of new borrowers are taking a rate fixed for longer.
  • The 3.99% comes from the release's new-business table, so an owner already holding a fixed-rate Italian loan is not repriced by it.
  • On the income side, the cedolare secca substitute tax allows a flat 21% on the whole rent in place of ordinary income tax.

What to watch

  • The two cost measures in this release are built differently. A rate of charge includes fees by definition, while the 3.58% composite is a separate series whose method the release places in a separate note, and both August readings are provisional.
  • The one-year fixation share at 23.9% is the number that shows how borrowers are reacting, and the release does not break short and long fixed pricing down any further.
  • The 3.99% and the 10.78% are national averages for new lending across all borrowers. What an individual is quoted turns on the loan-to-value ratio, the term and the borrower's profile.

Sources: Banca d'Italia https://www.bancaditalia.it/pubblicazioni/moneta-banche/2026-moneta/statistiche_BAM_20261009.pdf

Market data: Italy · Siracusa (Ortigia) · Sassari (province · Palermo (province)