Description
Article 38(5b) of Provincial Law No 21 of 13 November 1992 and Article 45(5) of Provincial Law No 16 of 12 September 2008 provide for the possibility for the borrower to request the lending institution to renegotiate the loan by converting the variable rate to a fixed rate.
Article 38(5)(b) of Provincial Law No 21 of 13 November 1992 provides that the Provincial Council is authorised to contribute to the costs deriving from the above renegotiation in the event that the conversion results in a fixed rate payable by the borrower of more than 15 per cent compared with the initial rate.
Article 45(5) of Provincial Law No 16 of 12 September 2008 provides that the Provincial Council is authorised to contribute to the costs deriving from the above renegotiation in the event that the conversion entails a change in the rate borne by the beneficiary of more than 15 per cent as compared with the initial rate. Intervention shall be determined to an extent not exceeding the portion of the cost for the part exceeding the aforesaid 15 per cent and limited to the interest rate borne by the beneficiary.
Restrictions
The fixed interest rate that replaces the variable rate may not exceed the limit set forth in Provincial Council Resolution No. 2606 of 30 October 2009 as amended by Provincial Council Resolution No. 669 of 5 April 2012.
The fixed rate limit is as follows:
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Renegotiation of the loan at the initiative of the borrower by converting the variable rate into a fixed rate MAXIMUM FIXED RATE applicable (Provincial Law 21/1992 Article 38 paragraph 5ter; Provincial Law 16/2008 Article 45 paragraph 5; Provincial Council Resolution 2606/2009 and 669/2012) | ||||
| October 2025 rates | ||||
| For loans with residual duration up to 15 years | ||||
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IRS 10Y - Letter As at 22 September 2025 (1) | Maximum spread | Maximum rate | ||
| 2,70 | 1,05 | 3,750% | ||
| For loans with residual maturity over 15 years | ||||
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IRS 20Y - Letter As at 22 September 2025 (1) | Maximum spread | Maximum rate | ||
| 2,95 | 1,10 | 4,050% | ||
| (1) rate quoted in Il Sole - 24 Ore of 23 September 2025 | ||||
| Renegotiation of the loan at the initiative of the borrower by converting the variable rate to a fixed rate is provided for by: LP. 21/1992 art. 38 c. 5ter: this rule applies to loans LP. 21/1992, LP. 2/2009 art. 30 c. 4 (Home saving), LP. 19/2009 art. 59 (Extraordinary plan 2010), LP. 1/2014 art. 54 c. 1 (2015-2018 Home Plan) | ||||
| IRS PARAMETER: This is the one identified for fixed-rate mortgages by the agreements entered into with the banks for the management of the 2010 Extraordinary Plan mortgages (Provincial Law 19/2009 art. 59). These conventions establish that the IRS parameter is measured on the 20th day of the month preceding the month in which the loan contract is stipulated; if the 20th day coincides with a holiday, the IRS parameter is measured on the first subsequent working day. | ||||
| MAXIMUM SPREAD: this is the one established by means of an exchange of correspondence between the Autonomous Province of Trento and the contracting banks, most recently defined by letter prot. 503501 of 19/08/2020 and valid from 1 September 2020. | ||||