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.