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?

The following are key reasons to consider Surroga: 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.

How Does Surroga Work?

The process involves several steps:

You find a new bank offering better conditions.

The new bank pays for the notary and appraisal.

Your old bank transfers the mortgage to the new bank without charging any penalties.

You start paying your mortgage installments to the new bank.

Limitations

While Surroga offers many benefits, there are some limitations to consider: 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.

Credit Score: Your credit score must be good enough to qualify for the new loan.

Benefits of Surroga

The benefits of Surroga include:

Savings: You can save thousands of euros by switching to a lower interest rate.

Flexibility: You can change the type of loan or the duration to suit your needs.

No Risk: You don't have to worry about penalties or fees for leaving your old bank.

How to Find the Best Deal

To find the best deal, you should:

Compare Rates: Research and compare mortgage rates offered by different banks.

Check Conditions: Read the fine print and understand the conditions of the new loan.

Consult a Broker: Consider consulting a mortgage broker who can help you find the best deal.

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. Some key takeaways to remember:

Surroga is a free process.

You can save thousands by switching to a lower interest rate.

You can change the type of loan or the duration to suit your needs.

Research and compare rates before making a decision.

👉 [Compare Italian Mortgage Rates (Surroga)](/en/simulatore-mutuo)

Frequently Asked Questions

Here are some frequently asked questions about Surroga:

Is Surroga really free? Yes, Surroga is a free process. You don't have to pay any fees or penalties.

Can I switch banks at any time? Yes, you can switch banks at any time, but it's recommended to check the market rates annually to find the best deal.

Do I need to have a good credit score? Yes, you need to have a good credit score to qualify for the new loan.

Can I ask for extra cash? No, you can only transfer the exact outstanding balance of your loan. If you need extra cash, you would need to apply for a new loan, which is not free.