Back in 2022 I went with my brother to three different banks for his first mortgage. He was 31, had been on a permanent contract for four years, and wanted a €165,000 home in Padova. The first bank told him the Consap first-home guarantee fund "wasn't available any more". The second one offered it only if he also opened a savings account. The third treated it as a standard option and trimmed his spread by 0.40 points. Same young man, same paperwork, three completely different answers. From that afternoon on I understood that, in Italy, there is no single truth about the under-36 first-home mortgage: there is only what each individual branch feels like doing for you.
April 2026. The first-home mortgage benefits for under-36s are still in force and have been refunded by the Budget Law. But the bureaucratic machine works unevenly. Here is what you actually need to know, in practical terms.
The Tax Benefits Actually in Force in 2026
Three distinct instruments, often confused with one another:
1. The Consap First-Home Guarantee Fund (law 147/2013). The State, through Consap, guarantees up to 50% of the principal of the mortgage for those under 36 with an ISEE below €40,000. For priority categories (young couples, single-parent families with minor children, public-housing tenants) the guarantee rises to 80%. That means the bank takes on much less risk and usually trims the spread by 0.30–0.50 points.
2. Exemption from registration, mortgage and cadastral taxes. On the deed of purchase of a first home, under-36s with an ISEE below €40,000 are exempt from registration tax (2% if buying from a private seller), mortgage tax and cadastral tax (€50 each if from a private seller, €200 each if from a VAT-registered business). On top of that, they get a tax credit equal to the VAT paid (if buying from a VAT-registered business at the 4% rate).
3. Exemption from the substitute tax on the mortgage (0.25%). The substitute tax, which normally amounts to 0.25% of the principal disbursed on first-home mortgages (2% if not a first home), is set to zero for under-36s. On a €180,000 mortgage that's €450 saved.
Adding up the three items, on a €200,000 purchase with a €160,000 mortgage, the total saving for an under-36 with a qualifying ISEE is in the order of €6,000–9,000. Hardly small change.
The Requirements, with No Frills
| Requirement | Threshold | Practical notes |
|---|---|---|
| Age | Under 36 on the day of the deed | What counts is your birthday, not the date of the preliminary contract. If you turn 36 after signing the preliminary but before the deed, you lose the benefits. |
| ISEE | Below €40,000 | It is calculated on the previous year. If your income has just gone up, get the ISEE done as early as possible. |
| Property type | First home, not luxury (cadastral categories A/1, A/8, A/9 excluded) | Also applies to properties under construction, as long as they are intended as your main home. |
| Residency | Move your residency to the property within 18 months of the deed | If you don't move your residency in time, the benefits are revoked and back taxes plus penalties kick in. |
| Owning other properties | You must not own other residential properties in the same municipality | If you own a home you received as a gift, you have to sell it within 1 year of the deed of the new one. |
How the Consap Guarantee Fund Works in Practice
The bureaucracy is often the most intimidating part, but it is actually fairly straightforward. You don't file the application yourself: the bank does it on your behalf, after putting the mortgage file together. You fill in a form, the bank sends it through, and Consap typically responds within 20 days. If the answer is yes, the bank disburses the mortgage with the State guarantee behind it.
What changes from one bank to another is how much they want to handle the paperwork. The big banks have dedicated teams and process thousands of files a year: for them it is routine. Smaller branches or local banks sometimes prefer to skip the file and offer you "other terms" in exchange for giving up the fund. Almost always, it pays to push back or to switch banks.
Verified anecdote: in 2024 I saw two parallel quotes for the same profile. Big national bank: TAN 3.15%, Consap fund included, file processed in 30 days. Local bank: TAN 3.55%, "we don't handle the fund because it complicates things". A 0.40% difference means, on €160,000 over 25 years, about €35 more on the monthly payment. Ten thousand five hundred euros over the life of the loan.
Mistakes Estate Agents (and Sometimes Notaries) Don't Tell You About
1. Buying as a couple with one over-36. If two of you sign the deed and one is over 36, the benefits only apply to the under-36's share of ownership. That means at 50/50 you lose half the advantages. The fix: put the property in the under-36's name only (if the bank accepts it from a mortgage standpoint) or accept the reduction.
2. ISEE calculated badly. Many under-36s do their ISEE on their own with INPS's online calculator without realising that financial assets, gifts received and any property held as bare ownership all count. The €40,000 threshold is easy to blow through if you have €80,000 in cash saved up for the down payment. Have a CAF prepare it for you.
3. Preliminary contract signed too early. If you sign the preliminary in February and the deed is in July, but the ISEE in force between February and July changes (because a new model is released), it can happen that on the day of the deed the ISEE is no longer valid. You have to redo it. Few people remind you of this.
4. Inflated processing fees. Some banks, knowing that you have access to the Consap fund and to the tax breaks, push up the processing and appraisal fees to claw back margin. On a Consap mortgage you should pay at most €500–800 in processing and appraisal, often less. If they ask for €1,500–2,000, push back.
5. The bank's "compulsory" fire insurance. Fire insurance is required by law on the mortgage, but the law also says you can choose it independently (law 124/2017). The policies the banks push often cost three times as much as those of an external insurer. In numbers: €80–150 a year vs. €250–400 a year. Over 25 years that is €2,500–6,000.
Operational Checklist: the Steps in the Right Order
- Calculate your current ISEE: best done before you start house-hunting, so you know whether you're under €40,000.
- Compare at least 4 banks: yes, even if it sounds excessive. At least two big national ones and two between local and online.
- Explicitly ask for the Consap fund in every quote: if the bank dodges the question, it's a sign they handle few of these and you might lose out.
- Check the maximum loan amount: the Consap fund covers mortgages up to €250,000. Above that, it doesn't apply.
- Have your ISEE updated before the deed: especially if you're close to the threshold or if the ISEE has expired.
- Estimate a sustainable instalment: rule of thumb, 30% of net household income net of other commitments. Below that you have a safety margin, above it you start to feel the squeeze.
- Move your residency on time: 18 months sounds like plenty, but between purchase, renovation and moving they fly by. Put it in the diary.
Frequently Asked Questions
Can I use the Consap fund if I'm buying with a partner who is over 36?
Yes, but the fund only applies to the under-36's share of ownership. If you buy 50/50, the fund covers the half of the mortgage attributable to the under-36.
Do the benefits only apply to a first home ever, or also to those who have already owned other homes?
They apply if at the time of purchase you don't own other residential properties in the same municipality. If you sold the previous one, fine. If you received it as a gift, you have to sell it within 1 year of the new deed.
What happens if I lose my job after getting the Consap mortgage?
The mortgage continues on the same terms. The Consap fund guarantees the bank, not you: if you can't keep up with the payments, the bank asks Consap to step in and the procedure runs its course, but as far as you are concerned nothing changes compared to a normal mortgage.
Can I access the fund if I'm self-employed?
Yes, but banks tend to be more cautious. Prepare at least 3 years of tax returns and stable financials. A VAT number opened less than 24 months ago often gets rejected.
Is the Consap fund free or does it have a cost?
It is free for the applicant. The bank is not allowed to charge you commissions for handling the fund.
In Short
The under-36 first-home mortgage in 2026 is one of the most advantageous instruments in the Italian retail credit system: between tax breaks and access to the Consap fund, we are talking about a total saving that can come close to €10,000. But the benefits have to be asked for, one by one. Banks don't apply them automatically, and some branches would rather avoid them.
When you have your numbers (principal, term, negotiated spread) and the moment to commit is near, it is worth running one final check with a simulation tool: work out what you really pay each month using the actual figures from the quote in your hand, before going in to sign. Seeing the instalment multiplied by 300 months is the healthiest way to avoid surprises down the road.
Related reading on mortgages
- Fixed or variable rate in 2026: which pays off with Euribor at 2.165% — if you still have to choose between a fixed and variable instalment.
- Mortgage spread: how to read it in the SECCI and why different banks offer you a different one — before signing, check how heavy the spread weighs on you.
- French amortisation: how it really works, explained step by step — to truly understand the amortisation schedule attached to the contract.