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Mortgages with usury rates, the levels set by Bank of Italy for the quarter

Bank of Italy has published the surveys relating to the second quarter of 2020 on usurious rates. Here are beyond what thresholds a mortgage can be considered usury.

Mortgage with usurious interest rates
The interest rate of the loan – in particular the average global effective rate TEGM, including the interest on the loan installments, that of any arrears, penalties and other possible expenses – can be considered usurious if it exceeds the levels set by the Bank of Italy every three months (pursuant to law 108/96).

If the rate of the loan goes beyond the thresholds set by the Bank of Italy, In case of victory, the borrower is entitled to reimbursement of the interest paid and avoid paying future ones.

Mortgages, usury threshold rates for the current quarter
The rates issued at the end of September by the Bank of Italy will be valid until 31 December 2020. In particular, the usurious TEGM rates for fixed rate mortgages are set at 6.5375% (up from the previous 6.4750 % and against an average value of 2.03%) and 7.05% for variable rate mortgages (against the previous 6.9250 % and against an average TEGM of 2.44%). The threshold for the brokerage fee of agents in the event of a mortgage is set at 1.37%, down from the previous 1.58%.

For the calculation of usurious rates, a surcharge will then be applied to the threshold rates according to the relative ministerial decree.

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Restructuring and borrower bonus, how to settle when the loan for use ends

In the event that the loan for use of a property is interrupted, is it possible for the borrower who has benefited from the restructuring bonus to continue to benefit from the deduction? The answer is provided by the tax authorities.

In particular, the following question was asked in the “FiscoOggi mail” section: “If the loan for use is interrupted, the borrower who has incurred the restructuring expense can continue to deduct the amount due up to the tenth year ? “.

In responding, the tax authorities underlined that “in the most frequent cases (sale, donation, exchange) the change in ownership of the property on which the building assets have been recovered, before the entire period of use of the deduction, involves the transfer of the unused deduction quotas “.

However, in the event that the deduction is up to the owner of the property – borrower or tenant – the residual deductions are not transferred and the borrower retains the right to take advantage of the benefit , even if the detention is interrupted.

The rules on short rentals
The amendment, however, was withdrawn, as the provision included in the August decree was considered “unacceptable” by the President of the Senate. “We hope that the reaction of the proponents is not to look for a new provision in which to insert the norm, but to take the opportunity for a better meditation, – observes the president of Confedilizia Giorgio Spaziani Testareferring to the PD that through Dario Franceschini had proposed the rule.

“First, however, we need to clarify what the intent is. If it is the one declared in the text, and that is to specify when a short lease should be presumed to be entrepreneurial, it is sufficient to resume the contents of the opinion of the Revenue Agency of last August 26, which explained that the lease is considered entrepreneurial in the presence of supply of services (eg: meals, rental cars, tourist guides, etc.), use of employees, use of an office, organization of means and human resources, use of other possible factors of production. These are the general rules that have always been applied: it would not be useful to recall them, but if this is deemed useful, it should be done, but without upsetting decades of civil and tax law (and with risks of unconstitutionality).

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