Italy Now Offers Europe’s Most Favorable Mortgage Rates
Rome, Italy – Italian homeowners and prospective buyers are benefiting from some of the lowest mortgage rates in Europe, according to recent data from the European mortgage Federation. The country is emerging as a standout market for real estate financing as the European Central Bank’s rate adjustments between 2024 and 2025 take effect.
The average mortgage rate in Italy reached 3.19% in the second quarter of 2025, positioning it among the lowest in the region. This contrasts sharply with rates in countries like Poland (6.95%),Hungary (6.69%), and Romania (5.81%) during the same period.The Czech Republic (4.68%) and the United kingdom (4.43%) also recorded significantly higher average rates.
While Germany (3.67%), Ireland (3.60%), Holland (3.50%), and Portugal (3.39%) saw slightly higher rates, France (3.11%) and Belgium (3.08%) reported figures comparable to Italy. Spain currently offers marginally more competitive rates at 2.72%.
For Italians with variable-rate mortgages, conditions are improving further. A recent simulation by Mutuionline indicates the average interest rate for 20 and 30-year variable mortgages currently stands at 2.68%, a substantial decrease from 4.04% in November 2024. This trend suggests a lighter financial burden for Italian mortgage holders compared to many of their European counterparts.
