Home Loans in Malta

The procedure to obtain a home loan in Malta or Gozo is fairly similar across all banks on the Maltese islands. 

Obtaining a Home loan in Malta or Gozo – Procedure

Prior start looking for a property in Malta and Gozo, it is a great idea to check with your bank. In many situations, we find that buyers, particularly First Time Buyers, begin shopping for a home before checking with a local bank to see how much money they may borrow based on their disposable income.

This is a typical error that can lead to anger and disappointment when one discovers that the bank would not lend them the whole amount. Whether you’re buying your first, second, or fourth house, you may require a loan. If you’re buying a property in Malta to live in, the Classic Home Loan is just what you need.

Hereunder, we have given you a guideline of what documents you’ll need to show to a bank in Malta or Gozo, as well as what the bank expects from you during the loan duration.

Home loan procedure

All banks on the Maltese islands follow a similar approach for obtaining a house loan in Malta or Gozo.

The suitable mortgage relies a lot on the condition of the property and what the buyer wants to do with it. Residents can apply for flexible loans that cover up to 90% of the purchase price, with repayments stretched out over 40 years at low interest rates. If you’re buying a house with your partner or spouse, the bank will take into account both of your disposable income. Learn more on the different incentives first-time buyers can benefit from local banks. 

Home Loans For Non-residents

Loans covering up to 80% of the property value can be available for non-EU residents, however this varies. Monthly repayments should not exceed 30% of gross income in any instance.

The following documents are necessary to apply for a house loan and for the banks to execute the application efficiently:

• A recent pay slip and FS3 (Annual Employee Statement of Earnings reconciliation) as evidence of income
• An architect’s estimate of the property value
• Any building permits and plans
• Records of any existing financial commitments, including credit card debt and any other loans
• A photocopy of the applicant’s ID card
• A copy of the preliminary agreement
• If the person applying for a loan is not already an account holder with the bank, a character reference might also be necessary
• A complete life insurance policy is required for any mortgage, as is a building insurance policy.

In the case of a non-resident’s application for a home loan, all of the above would be required as well as additional documentation depending on the circumstances of the individual application.

How Banks May Offer Home Loans

In turn, the banks offer mortgage under the following terms:

• Up to 90% of the purchase price or completion costs for residents, or 80% for non-residents.
• Preferential interest rates especially for the first years and for high value loans.
• Monthly repayments up to 30% of the gross income.
• Flexible loan repayment terms of up to 40 years, or up until age 65.

All banks in Malta offer Bridging Loans.

At RE/MAX Malta we are able to assist you in contacting the bank of your preference as well as guide you with Insurance Services that best suits your needs on a case-by-case basis. We are able to provide you and your partner/spouse ongoing support throughout the process.