100% Mortgage: Does It Still Exist? A Complete Guide to Getting One

Buying your first home is a major milestone in many people’s lives, a dream that often clashes with the need for a solid financial foundation. In a context like Italy, where homeownership is a value deeply rooted in culture and tradition, the idea of obtaining a loan that covers the entire cost of the property seems like an ideal solution. But does the 100 percent mortgage still exist? The answer is yes, although with well-defined paths and requirements. This comprehensive guide explores the possibilities, regulations, and strategies for accessing full financing, combining the tradition of “brick and mortar” with the financial innovations available today.

Getting a mortgage that finances the entire value of the property is a real opportunity, especially for certain groups like young people and families. Although not all banks offer it and the conditions can be stricter, access to this type of loan is made possible mainly through state guarantees and specific commercial offers from credit institutions. Understanding the mechanisms that govern it is the first step to turning a lifelong project into reality, without the need for substantial initial capital.

What Is a 100% Mortgage and Why Is It So Rare

A 100% mortgage is a loan that covers the entire purchase price of a property, unlike traditional mortgages which, by law, usually stop at 80% of the value. This solution is particularly advantageous for those who do not have the necessary liquidity to cover the 20% down payment, in addition to ancillary costs such as notary fees and taxes. However, precisely because the bank assumes a greater risk by financing the entire amount, granting a 100% mortgage is less common and requires more solid guarantees. In fact, credit institutions must protect themselves more in case of borrower default, often applying slightly higher interest rates and requiring stricter requirements.

Italian Mortgage Regulations: The 80% Limit

Italian law, in line with European directives, establishes a financing limit for mortgage loans, set at 80% of the property’s value (the so-called Loan-to-Value or LTV). This rule, dictated by the Bank of Italy, aims to contain risks for both banks and customers, avoiding excessive debt exposure. Exceeding this threshold is possible only in the presence of supplementary guarantees that protect the bank for the portion exceeding 80%. This is where tools like the state Guarantee Fund or other forms of insurance come into play, allowing credit institutions to grant loans up to 100% as an exception to the standard limit, but always within a prudential regulatory framework.

How to Get a 100% Mortgage: Alternative Guarantees

To exceed the 80% limit and access a full mortgage, you need to provide the bank with additional guarantees. These solutions serve to mitigate the risk for the credit institution and make the transaction sustainable. The main options are using the state Guarantee Fund, taking out a surety bond policy, or having a guarantor. The choice of the most suitable guarantee depends on the applicant’s characteristics, their income situation, and the specific policies of the chosen bank. Let’s analyze the most common options in detail.

The First Home Guarantee Fund (Consap)

The main tool for obtaining a 100% mortgage is the First Home Guarantee Fund (Fondo di Garanzia per la Prima Casa), managed by Consap on behalf of the Ministry of Economy and Finance. This fund offers a public guarantee that can cover up to 80% of the mortgage’s principal amount, thus allowing banks to finance the entire property value. Access is open to all citizens who do not own other residential properties, but certain categories have priority, such as young people under 36, young couples, single-parent households with minor children, and large families with an ISEE (Equivalent Economic Situation Indicator) up to €40,000. The 2025 Budget Law has extended this important benefit until December 31, 2027.

Surety Bond Insurance Policies

Another way to obtain financing that exceeds 80% of the property’s value is by taking out a surety bond insurance policy. This policy acts as a guarantee for the bank on the portion of the mortgage that exceeds the standard limit. In practice, an insurance company commits to reimbursing the bank in case of the debtor’s default for the part of the loan not covered by the mortgage. The cost of this policy can be borne directly by the customer or, in some cases, integrated by the bank into the spread calculation, resulting in a slight increase in the interest rate. It is an effective solution, although less common than the more advantageous Consap Fund.

The Role of a Guarantor

A more traditional solution, but still very common in Mediterranean culture, is the presence of a guarantor. This is a third person, usually a parent or a close relative with a solid income and financial standing, who commits to being responsible for the debt with their own assets if the borrower is no longer able to make the payments. The bank may request this personal guarantee when it deems the applicant’s profile not entirely sufficient, for example, in the case of a non-permanent employment contract. The guarantor provides additional security that can convince the institution to grant an amount greater than 80%.

Requirements to Access a Mortgage with a State Guarantee

To benefit from the Consap Fund guarantee, which is the main path to a 100% mortgage, you must meet some specific requirements. The loan must not exceed €250,000, and the purchased property must be used as a primary residence and not belong to luxury property categories (A1, A8, A9). To obtain the enhanced 80% guarantee, you must fall into one of the priority categories, such as being under 36 years old, and have an ISEE not exceeding €40,000 per year. It is also essential to have a stable employment situation that ensures the sustainability of the monthly payment, which, as a rule, should not exceed about one-third of your net monthly income. To start the process, simply contact one of the banks participating in the initiative, which will handle submitting the application to Consap.

Banks That Offer 100 Percent Mortgages

Thanks mainly to the Consap Fund, several banks in Italy offer the possibility of obtaining a 100% mortgage. Among the most active credit institutions in this area are Intesa Sanpaolo, Crédit Agricole, BPER Banca, and Monte dei Paschi di Siena. These banks offer specific products, often aimed at young people under 36, that integrate the state guarantee. For example, Intesa Sanpaolo offers the “Mutuo Giovani Consap Green” and “Mutuo Domus,” the latter also accessible to those over 36. BPER Banca and Banco BPM also have dedicated solutions, such as the “Mutuo You Giovani Green,” which combine favorable conditions with the fund’s support. It is always advisable to compare the different offers to find the solution that best suits your needs. You can learn more about mortgages for young people by consulting our guide to first home benefits for those under 36.

Advantages and Disadvantages of Full Financing

The most obvious advantage of a 100% mortgage is the ability to buy a home without having liquidity for the down payment, a significant obstacle for many buyers. This allows even those with a good income but who haven’t had the chance to accumulate substantial savings to enter the real estate market. However, there are also disadvantages to consider. The interest rates and spreads applied may be slightly higher than for a standard mortgage, to compensate for the greater risk assumed by the bank. Furthermore, the total amount to be repaid will be higher, with a potentially heavier monthly payment. It is therefore crucial to carefully assess your long-term repayment capacity and consider whether an alternative, such as a 90% or 95% mortgage, might be a better compromise. Proper planning, perhaps starting by calculating the maximum sustainable payment, is always the first step.

Conclusion

In conclusion, the 100 percent mortgage is not a mirage, but a concrete possibility in the Italian credit landscape, strongly linked to the tradition of homeownership and the innovation of guarantee instruments. Thanks to the Consap Fund, extended until 2027, young people, families, and other priority categories can overcome the hurdle of the down payment and achieve their lifelong dream. Although it requires stricter requirements and a careful cost assessment, this option represents an important lever for financial and social inclusion. Before embarking on this path, it is essential to get informed, compare offers from various credit institutions, and soberly evaluate your financial sustainability. Preparing the documents required for the application and understanding all the stages, from the appraisal to the final deed, are key steps for a smooth and successful experience.

Frequently Asked Questions

Francesco Zinghinì

Electronic Engineer expert in Fintech systems. Founder of MutuiperlaCasa.com and developer of CRM systems for credit management. On TuttoSemplice, he applies his technical experience to analyze financial markets, mortgages, and insurance, helping users find optimal solutions with mathematical transparency.

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