Italian mortgage demand fell by 5.9% in the first half of 2026 compared to the same period in 2025, driven by a sharp contraction in loan switching, according to data from the CRIF credit information system EURISC. The latest market figures show that while borrowing costs have eased following monetary policy adjustments, household demand remains cautious amid broader macroeconomic uncertainty.
Mortgage Surroghe Drop Sharply in Early 2026
The market downturn in early 2026 was largely led by a steep decline in refinancing activity. According to the CRIF Barometer, loan surrogations dropped by 38.4% in the first quarter of 2026 compared to the opening quarter of the previous year. This contraction indicates that fewer borrowers are currently finding financial advantage in moving their existing home loans to new lenders.
Despite the drop in refinancing, overall market demand experienced a brief stabilization during the spring. According to the EURISC data, May 2026 was the only month in the first half of the year to match historical volume, holding flat with a marginal +0.4% compared to May 2025. Across the entire six-month window, however, total mortgage applications lagged behind 2025 figures.
Borrowing Preferences and Loan Sizes
Italian households continue to favor mid-range property loans with long repayment horizons. Data compiled in the CRIF analysis indicates that more than 60% of all mortgage requests in the period targeted amounts between 100,000 and 300,000 euros.
When structuring these loans, longer repayment terms dominated buyer preferences. Terms spanning 25 to 30 years accounted for 43.8% of all requested mortgages, reflecting ongoing efforts by families to keep monthly installments manageable. Meanwhile, the average requested loan amount remained virtually unchanged at 153,972 euros, slipping just 0.2% in the first half of 2026 compared to the first half of 2025.
Monetary Policy and Market Outlook
The broader lending environment has shifted in response to central bank actions. Simone Capecchi, Executive Director at CRIF, noted that the progressive easing of monetary policy—which began in the second half of 2024 and continued through May 2026—helped lower the cost of credit, improve installment sustainability, and strengthen household financial equilibrium.
Looking ahead, market participants expect cautious consumer behavior to persist. “In a scenario still characterized by macroeconomic uncertainty and more stringent regulatory requirements, the demand for credit by Italian families should remain marked by caution in the coming months,” Capecchi stated.
At the same time, this prudential approach is steering market interest toward specific property segments. According to CRIF, applications for mortgages tied to high energy-efficiency homes and structural renovation projects are generating growing demand from both families and industry operators.
Frequently Asked Questions
How did Italian mortgage demand perform in the first half of 2026?
Total mortgage applications dropped by 5.9% in the first half of 2026 compared to the corresponding period in 2025, according to the CRIF EURISC credit information system.
What caused the slowdown in the mortgage market?
The primary driver was a steep 38.4% drop in loan surrogations (refinancing) during the first quarter of 2026, alongside ongoing consumer caution amid macroeconomic uncertainty.
What loan amounts and terms do Italian borrowers prefer?
More than 60% of requests range between 100,000 and 300,000 euros, with 25-to-30-year loan terms capturing 43.8% of total requests, according to CRIF data.
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