Mortgage Payment: When is it Possible to Skip a Payment?

When is it Possible to Skip Mortgage Payments?

Taking out a mortgage involves a commitment to a lending institution, requiring timely payments on a monthly, quarterly, semi-annual, or annual basis, whether for purchasing a home or other financial needs.
However, there may be times when making these payments becomes challenging, prompting questions about the possibility of deferring a payment.

The good news is that Italian law provides various options for delaying mortgage payments or even suspending the mortgage for a specific time period.
This article will explore all available options for skipping a mortgage payment.

Can You Skip a Payment?

Certain mortgage agreements may include a clause allowing borrowers to skip one or more payments each year while deferring them to a later date.
However, borrowers must be up-to-date on payments for a specific duration, usually between six to twelve months, to qualify for this benefit.
Therefore, it’s essential to review the contract terms to determine if such a clause exists.

Some banks might allow deferment without accruing additional interest for a maximum of 30 days.
For example, if the mortgage payment is due on the 15th of each month, and on September 15th funds are unavailable, paying by October 15th avoids interest.
By making subsequent payments within 30 days, borrowers can effectively skip a payment and recover it when their financial situation improves.

Skip Payments for up to 18 Months

If financial difficulties arise due to job-related issues, borrowers can request a longer suspension of payments, up to a maximum of 18 months.
This option is available through the Gasparrini Fund, a solidarity fund established in 2007 that supports individuals meeting specific criteria, such as:

• The mortgage is for purchasing a non-luxury first home.
• An ISEE (equivalent economic situation indicator) of no more than 30,000 euros.
• The total mortgage amount is capped at 250,000 euros.
• Not having previously benefited from a suspension exceeding 18 months.
• The repayment plan has been in place for more than 12 months.
• Being a salaried employee.

The length of the suspension depends on the severity of the economic downturn: a suspension of at least 20% of salary for 30 to 150 days allows for a 6-month deferral; 151 to 302 days permits a 12-month suspension; and over 303 days due to unemployment, death, or severe disability allows for an 18-month suspension.

Deferring Mortgage Payments

Another option is negotiating with your bank for a mortgage restructuring, whereby you can modify the repayment plan to defer certain payments.
It’s worth noting that banks may voluntarily offer clients the ability to postpone specific payments to address temporary financial needs.