Renegotiation of subsidised home loan interest rate

Renegotiation of the interest rate on a subsidised home loan makes it possible to reduce the cost of the current loan (renegotiation from a fixed rate to a fixed rate or from a variable rate to a variable rate) or to make the cost of the loan certain (renegotiation by converting the variable rate to a fixed rate).

The rules allowing renegotiation of the interest rate are as follows:

The interest rate renegotiation applies to subsidised home loans benefiting from the facilities provided by:

• Provincial Law 13 November 1992 no. 21;
• Provincial Law 29 December 2005 No 20, Article 58 (Extraordinary Plan 2006-2007);
• Provincial Law 21 December 2007 No 23, Article 53 (Extraordinary Plan 2008);
• Provincial Law 28 March 2009 No 2, Article 30, Paragraph 4 (Home saving);
• Provincial Law 28 December 2009 No 19, Article 59 (Extraordinary Plan 2010);
• Provincial Law 22 April 2014 No. 1, Article 54, Paragraph 1 (2015-2018 Home Plan).

The reference legislation is indicated in the loan agreement.

The borrower, on his or her own initiative, may ask the lending bank to renegotiate the interest rate of the subsidised home loan.

For further information please contact

• the Comunità di valle/Territorio Val d'Adige to which the original application for a public grant for the purchase, construction, renovation and purchase/renovation of the main home was submitted
• the Housing Policy Service of the Autonomous Province of Trento for members of housing cooperatives (with the exception of loans to cooperatives referred to in Provincial Law No 1, Article 54(1) of 22 April 2014, for which it is necessary to apply to the relevant Community of the valley).

In the event of renegotiation of the interest rate of a loan benefiting from the facilitations envisaged by Provincial Law no. 21 of 13 November 1992 or by Provincial Law no. 20 of 29 December 2005 (Extraordinary Plan 2006-2007), the interest rate that the bank may apply may not be higher than the reference rate determined by the Ministry of the Treasury for subsidised credit operations for the housing sector unless specifically authorised by the manager of the Provincial Housing Department, taking into account market conditions.