Surroga: How to Switch Mortgage Banks for Free in Italy

Note: This content is specific to the Italian banking system.

In many countries, refinancing a mortgage involves hefty closing costs, notary fees, and penalties. In Italy, thanks to the Bersani Decree of 2007, it is completely free. This process is called Surroga (Subrogation) or "Portabilità".

What is Surroga?

It is the right to transfer your existing mortgage debt from your current bank to a new bank that offers better conditions (usually a lower interest rate).

• Cost: €0.
• Notary: Paid by the new bank.
• Appraisal: Paid by the new bank.
• Penalties: Your old bank is legally forbidden from charging you for leaving.

Why do it?

1. Lower Interest: If you signed a loan at 4% and the market drops to 2.5%, you can switch and save thousands instantly.
2. Switch Type: You can change from a Variable Rate to a Fixed Rate (for security) or vice versa.
3. Change Duration: You can shorten or lengthen the loan term to adjust your monthly payment.

Limitations

• No Extra Cash: You can only transfer the exact outstanding balance of your loan. You cannot ask for extra money (liquidity) for renovations or a car. That would be a "Sostituzione," which is not free.
• Minimum Amount: Banks may be reluctant to accept a Surroga if the remaining loan amount is too small (e.g., < €50k), as they have to pay the notary fees and won't make much profit.

Conclusion

The Surroga is a powerful tool for homeowners in Italy. You should check the market rates annually. If you find a better deal, switch. It costs you nothing.

👉 Compare Italian Mortgage Rates (Surroga)