Obtaining a loan

A. Muscat, 1 Jul 2015

When buying your dream home chances are you will need financial assistance in order to back your step. Loans available from Maltese banks cater for the different types of purchases you may need to make: ranging from buying just the land and then proceeding to develop your own property, to buying a ready to move in home.

Banks usually fund up to 90% of your total costs while you will have to fund through your own savings the other 10%. Total costs include the cost of buying the property plus any additional costs incurred to transform that property into a liveable home. The loan amount will be repaid to the bank by monthly instalments that may be spread over a period of up to 40 years up to when you are at an age of 65. The monthly loan repayments will be calculated based on your monthly income and where applicable the joint monthly income. In any case the loan repayment will not be over 30% of the income being calculated on.

When obtaining a loan you will be required to take out a life assurance policy as well as insure your property so that you are covered in case of damage.

When applying for your home loan you will generally be required to present the below listed documents:

  • Identification (ID card or Passport)
  • Evidence of your income (recent FS3 and tax returns)
  • Three years statements of bank accounts as well as records of all investments and assets
  • Existing financial commitments (loan repayments and credit cards)
  • Architect’s property report and valuation, estimation of costs, site plans, building permits and layout.
  • Preliminary agreement (deed of acquisition)

When the buyer is a non-resident of Malta, it is still possible to obtain a loan from Maltese banks. The conditions are mainly the same with the exception that the loan percentage will most likely be limited to 80% of the value of the property instead of 90%.

When applying for your home loan, as a foreigner, you would generally be required to present the below listed documents:

  • Identification (ID card or Passport)
  • Evidence of your income (last three payslips and last three income tax returns)
  • Three years statements of bank accounts as well as records of all investments and assets
  • A Banker’s reference
  • Existing financial commitments (loan repayments and credit cards)
  • Architect’s property report and valuation, estimation of costs, site plans, building permits and layout.
  • Preliminary agreement (deed of acquisition)
  • Other specifically requested documents depending on your circumstances

The above is a general overview of how to obtain a loan, if you make an appointment with one of the Maltese Banks they will be able to guide you through the procedure required by them specifically. They may also offer various offers especially to first time buyers. It is recommended by Lion Malta to shop around and see which bank offers the most advantageous loan programme for your specific needs.




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