Speaking to the bank before you set out to look for your ideal home in Malta and Gozo is the way to go. In the majority of cases, we find that buyers—especially first-time buyers—often start searching for a property before checking with a local bank to find out what they can actually borrow. This is a common mistake made by anyone looking for home loans in Malta for the first time; it can be frustrating and sometimes disappointing if the buyer finds out they can’t borrow the full amount.
To help any future buyers out there, we’ve prepared a guide to the documentation you’ll need to present to a bank here, as well as what a bank’s expectations are of you throughout the process.
The journey to getting home loans in Malta or Gozo is fairly similar across all banks on the Maltese islands.
Choosing the right home loan is vital, and a lot of that depends on the property and what the buyer plans to do with it. Residents can get flexible loans that provide up to 90% of the purchase price, with repayments spread out over 40 years at highly competitive interest rates. If you're buying a home with your partner or spouse, the bank will take into consideration the disposable income of both individuals.
For non-residents, there are loans available covering up to 80% of the property value, although this varies. In both cases, monthly repayments shouldn’t be more than 30% of gross income.
To apply for a home loan and for banks to process the application efficiently, you're usually required to submit the following documents:
If you’re a non-resident applying for a home loan, all of the above would be required in addition to other documentation depending on your circumstances. The banks, in turn, offer home loans under the following terms:
Banks in Malta can also offer Bridging Loans.
At Damcar Properties, we’re qualified to help you contact the bank of your choice effectively, and guide you through the insurance services that best suit your specific needs. We provide you and your spouse with support throughout the process of finding and processing home loans in Malta.