Varied methods to sell the house
February 27, 2023

How to buy a house: mortgage or cash?

By nera

Everyone feels how risky it is to acquire too much debt. So it is practically to believe that purchasing your house with cash rather of a mortgage is the good option. It would be like this?

Continue reading this article to learn more about this topic and discover all the advantages and disadvantages of one option over the other.

Advantages of buying a house with cash

Nobody does anything for nothing, so if the bank asks us for money and because it knows very well that it will earn it with interest, interest that is not just a few pennies

By paying in cash you will then have less taxes , fewer bureaucratic procedures , only one notarial deed instead of two (because there is also one with the bank). In essence, buying a house without a mortgage will certainly save money, but there are many other factors to consider that could tip the balance towards the other choice that we will now analyze.

Advantages of buying a house with a mortgage

Tax deductions are certainly one of the main advantages of buying a first home with a mortgage equal to 0.25% of the financial amount, instead of 2%. So it’s 100,000 euros, we’d be talking about 250 euros instead of 2000, not bad at all.

Furthermore, there is also the possibility of deducting 19% of interest expense on the mortgage from taxes, all within a maximum ceiling of 4,000 euros. To be deducted are:

Passive interests

Preliminary investigation and appraisal costs

Notary fees for the loan agreement

Substitutive tax

Brokerage fees required by credit institutions

Expenses for registration or cancellation of the mortgage

Valuation quotas dependent on indexation clauses


The right answer on what is better unfortunately does not exist, it is a very subjective factor that depends a lot from person to person.

Basically: do you have a high financial availability or can you count on the support of family members or relatives? Well, opt for cash. You will save on the cost of the house and you will not have to shoulder many years of debt with the bank.

Instead: Are you afraid of running out of liquidity? Remember that unforeseen expenses are around the corner and, in a period like this, financial instabilities are ever more present.