ORToday, anyone who enters the real estate market immediately notices that the situation has changed compared to last year. House prices have gone up a lot And banks have also become a little more expensive compared to twelve months ago. This is a combination that has significantly changed the attitude of families towards mortgages: if, in fact, in 2025 the “fixed rate” was the preferred choice, today who is about to buy a house is rediscovering an old acquaintance that seemed to have gone out of fashion: the variable rate.
Mortgages, the variable rate becomes convenient again
The reasons are not that mysterious, in fact it is very simple: you choose what is best for your wallet. At this moment, choose a fixed rate mortgage it costs a lot more, with a difference of around 80-90 cents with the variable one. It might seem like little, but translated into real money it means that every month you can save around 50 euros. This is why, if last year less than one person in twenty chose it, today the audience of those who “take risks” is expanding to make ends meet.
The climb towards the purchase: the obstacle of the down payment
The real problem, however, is not just the monthly instalment, but the initial hurdle. Almost no bank today lends all the money needed: usually you need to already have 30% of the value of the house in your pocket. It is the famous “advance”, a piggy bank which, with the increase in house prices, must be increasingly capacious. Let’s take the case of Rome. If last year for an average apartment worth 300 thousand euros, 82,000 euros of savings were needed, today around 89,000 are needed.
The variable mortgage regains popularity as the only way to make purchasing sustainable in the most expensive areas of Italy (Getty)
And then there’s the installment
But it’s not enough, because once this wall is overcome, the installment challenge begins. By buying in a cheap neighborhood, you can get by with around 625 euros a month, but if the dream is the historic center, the situation becomes extreme. There the houses cost so much that the fixed rate installment flies to 2,300 euros a month. It is precisely here that the variable becomes a temptation: by choosing it, that mammoth installment “slims” by over 200 euros.
From Milan to Naples: how much does the brick weigh?
Moving to Milanthe most expensive city in Italy, the necessary advance even rises to 134,000 euros. There the average fixed installment reached 1,531 eurosbut in elite areas it can exceed 3,000. Even under the Madonnina, the variable offers a breathing space of around 140 euros less per month. In Naples, however, for a house in Posillipo you need to have 126,000 euros ready and resign yourself to a fixed installment of 1,443 euros, 240 euros more than twelve months ago. Also in Turinwhich remains the most accessible, the installment increased by 100 euros in a year. In all these cities, unfortunately, saving money has become for many the only way to avoid seeing the dream of a home fade away.
Difficult words explained in brief
When you go to the bank, you are often inundated with acronyms. Knowing what they really mean is already half the way to not making mistakes. So let’s see.
- Fixed or variable rate: the fixed one gives peace of mind (the installment never changes), the variable one saves today but could increase tomorrow if the economy changes;
- Eurirs and Euribor: these are the “thermometers” that banks use. The Eurirs decides the price of the fixed rate, the Euribor that of the variable. If these indices rise, the installment also rises;
- Advance: almost no bank lends the full value of the house. Usually you need to have at least 20 or 30 percent of the total price in your pocket, in addition to money for the notary and taxes.
How to understand if you are “in it” with the costs?
Besides this, there is a golden rule that banks always look at: the mortgage payment should not exceed one third of the salary. Therefore, if you earn 1,500 euros a month, the ideal installment should not go beyond 500 euros. Furthermore, it is essential to remember that the price you see on the advert is never the final one. Between notary, real estate agency and taxes, you always have to calculate a good 10% more in “invisible” expenses.
Mortgage rates: looking to tomorrow
In short, today the question everyone asks themselves at the banking consultant’s desk is: “Should I take the risk or play it safe?”. There is no answer: the scenario for the rest of 2026 suggests caution, as always in recent years. THE variable rates should provide respite for the first few months, remaining stablebut forecasts, however, indicate a possible recovery in the second half of the year. The perfect mortgage no longer exists, it is a tailor-made suit that teaches that you can no longer buy without thinking: you have to look for the solution that fits perfectly, but be ready to change clothes if the wind turns tomorrow.
