Malta’s real estate market is vast and varied, with properties available to suit all requirements. Yet making a large purchase or investment in order to obtain a dream home may require financial assistance. Various types of home loans are available in Malta, with banks such as HSBC, Banif, BOV and APS offering specialist service at competitive prices.

Property Bank Loans in Malta

Loans are developed according to the needs of the individual, so whether one aims to purchase a shell property or plot of land that is to be developed, or even a property that will serve as a second home or rental, it is possible to obtain a loan relatively conveniently.

For Maltese citizens, a home loan may offer up to 90% of the property’s total value, with the other 10% normally paid out of the buyer’s pocket as a deposit on the property. Loan repayment conditions may be spread over the course of many decades. Typically it is up to 40 years depending on the individual’s age, or up to the age of 65, and normally do not exceed 25% of the individual’s gross income.

The amount that can be loaned by the bank is calculated depending on gross annual income or joint annual income if a couple is applying, pre-existing loans and debt, affordability and expenditure. In addition to these factors, a life insurance policy and building insurance policy are compulsory in order to cover the replacement cost of the property.

First time buyers

First time buyers typically receive the most profitable home loan rates. There are specific loans that provide many benefits, including advantageous interest rates, deductions for multiple legal fees and a loan amounting to up to €150,000 which is repayable over 40 years. In addition to the home loan, but depending on the specifications of that particular loan, first time buyers are eligible to supplementary loan packages, which include the purchasing of furniture and appliances.

What is required to apply for a property loan in Malta?

The requires are different for Maltese citizens and non-Maltese residents.

Property loan for Maltese Citizens

For Maltese citizens, the following items are required:

  • ID card or passport.
  • Proof of income, such as tax returns or FS3 forms.
  • Documentation of existing financial obligations, such as unrelated loans or credit cards.
  • Documentation pertaining to life insurance policies, investments, assets and bank account statements dating back three years.
  • An architect’s evaluation report of the property, including plans, permits and evaluation of costs.
  • The deed of acquisition or preliminary agreement.

Property loan for non-Maltese residents

Non-Maltese residents are welcome to apply for local loans, and up to 80% of the property’s value can be covered. Typically, loan repayments do not exceed 30% of an individual’s gross income and may also be repaid over a period of 40 years (depending on one’s age) or up until the age of 65. Life insurance and building insurance policies are also required when applying for a loan.

The following must be provided when applying for a loan:

  • Passport.
  • Proof of income, including three income tax returns or three months’ pay slips.
  • The deed of acquisition or preliminary agreement.
  • An architect’s evaluation report of the property, including plans, permits and evaluation of costs.
  • A banker’s reference.
  • Any pre-existing mortgage, loan or current account statements.

Every individual has different circumstances concerning their case, so additional documentation might be necessary. Read more about the Legal Process for buying a property in Malta



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