What is the difference between fixed and variable interest rate?
A fixed-interest loan means your interest rate remains unchanged unless there is a change in the Bank’s Base Rate (BBR), while variable interest can change depending on the market. Banks often start you off with a fixed rate for the first few years and then shift to a variable rate. If the bank changes its BBR, this will affect the variable rate but not the fixed rate.
What is a secured loan?
Home loans are usually secured, where the bank provides the loan in exchange for a form of collateral—something the bank can claim if the loan goes unpaid (normally the property itself).
Are there any penalties from the first-time buyer scheme when selling the property while still benefiting from the scheme?
Applicants who are still benefiting from the First-Time Buyer Scheme and sell the property must notify the Housing Authority upon signing the promise of sale. Any remaining grant payments will then be stopped.
What happens if I submit my application for the First-Time Buyers Scheme late?
Applicants who submit their application for the First-Time Buyer Scheme late will lose one annual payment of €1,000 for each year of late submission.
Who can apply for the first-time buyer scheme?
Under the First-Time Buyer Scheme, EU citizens, including Maltese citizens, are eligible to apply. Non-EU citizens are not eligible for the scheme.
Can I apply for more than one scheme at the same time?
Applicants interested in applying for more than one scheme at the same time should consult the eligibility criteria and terms and conditions established by the entity responsible for each scheme. For example, applicants cannot benefit from both the Housing Authority’s 10% Deposit Scheme and Equity Sharing Scheme at the same time. However, an applicant who benefits from the 10% Deposit Scheme may subsequently also benefit from the First-Time Buyer Scheme.
Applicants who are interested in applying for more than one scheme at the same time needs to look at the guidelines, and terms and conditions set by the entity responsible for those schemes. For example, applicants who are applying for the Housing Authority schemes, cannot benefit from both the 10% Deposit Scheme and Equity Sharing Scheme at the same time. However, an applicant who benefits from the 10% Deposit Scheme can subsequently benefit from the First-Time Buyer Scheme.
Should i apply for the first time buyer scheme before or after purchasing the property?
Applicants should apply for the First-Time Buyer Scheme after signing the final deed. Applicants who have not yet signed the final deed cannot submit their application or start benefiting from the annual grant of €1,000.
Applicants should apply for the First-Time Buyer Scheme after signing the final deed. Applicants who have not yet signed the final deed, cannot submit their application and start benefitting from the yearly grant of €1,000.