Step-by-Step Guide for
First Time
Property
Buyers
Housing Authority:
Click on each step to view what it entails.
Assessing Your Financial Situation & Setting a Budget
First things first, before looking at what properties are currently for sale, you need to know where you stand financially.
How much money do you have saved up? Have you set any money aside for this investment? It is never too late to start.
What are your current financial commitments? Car loans? Insurance? The lower your expenses are, the better the chances of getting a higher loan amount.
What are the upfront costs of buying a property? Keep in mind the extra costs that come with buying a property: the 10% deposit, notary fees, stamp duty, architect fees, bank charges, home insurance, and life insurance, among others.
Loan Acquisition & Eligibility
Once you understand what your financial situation looks like, start visiting banks. Do not visit just one. Different banks will offer different loan terms. Do not forget that bank loans will cover 90% of the property value, excluding the 10% deposit, which needs to be forked out from your own funds.
Your loan will depend on:
Income
Age
Current Expenses
Credit Score
Job Stability
Other financial commitments and debts
💡Tip:
If you don’t have the 10% down payment, the Housing Authority’s 10% Deposit Payment Scheme can be an option for you—subject to eligibility criteria. You can find more details about this scheme later in this guide or by visiting: https://housingauthority.gov.mt/services/affordable-housing/10-deposit-scheme/
Compare your loans based on:
The total amount of money lent
Interest Rates, including fixed interest rate options
Monthly repayments
Applicable fees, including processing fees, booking fees, commitment fees, the bank’s legal fees, and other related charges.
APRC (Annual Percentage Rate of Charge) – expressed as a percentage and reflects the total cost of the loan each year, including any fees.
Total amount to be repaid (i.e., money lent plus interest to be paid). This figure is typically found at the end of the amortisation table.
💡Tip:
If you are buying a property that is still under construction or needs finishing, the bank will include the finishing costs in the loaned amount. Therefore, when viewing such properties, factor these costs into the total property price. Additionally, banks may offer the possibility of acquiring a personal loan—usually at a higher interest rate—in addition to your home loan to cover extra expenses related to purchasing a property, such as buying furniture.
To find out what amount of loan you are eligible for:
In person:
Visit the bank—make sure to book an appointment first.
Online Home Loan Calculator:
While this offers a quick estimate, in-person visits ensure more accurate information and proper guidance, as you will receive an official quotation (known as an ESIS) which includes all the information about the facility.
Virtual Meeting:
Some banks also provide the convenience of online virtual meetings, which must be booked in advance.
Before visiting the bank:
Be sure to have copies of your:
- Payslips
- FS3 Forms
- ID/Residence Card
- Information/documents about any other financial commitments you may have
- Tax Returns (if self-employed)
💡Important:
To include overtime in your overall income, banks typically require up to 12 payslips along with an FS3 to assess whether it is regular. Please note that the documents required can differ from bank to bank; it is best to call and make sure you have all the required documentation.
Boosting Your Purchasing Power: Schemes and Incentives
Before creating your property wish list, explore the government schemes available for first-time buyers. These are designed to ease the financial burden of purchasing your first home. Through its homeownership schemes alone, the Housing Authority has helped around one family every two days become homeowners. Some of these schemes include:
This scheme assists individuals aged 30+ who, despite qualifying for a home loan, find that the amount they qualify for is not enough to purchase a property. Under this scheme, the Housing Authority acquires the remaining amount, up to 50% of the property value (excluding the deposit), which the applicant must repay interest-free after 20 years. The maximum home value under this scheme cannot surpass €250,000.
This scheme assists people aged 21 to 39 who qualify for a home loan to purchase a property valued up to €225,000 but lack the liquidity for the 10% deposit down payment. The bank will provide the 10% deposit through a personal loan, repayable over 25 years, with the Housing Authority covering the interest payments.
This scheme assists low-income earners with a monthly grant of up to €167 towards their home loan repayments. The property value should not exceed €140,000, with the Housing Authority covering notarial fees. If deemed eligible, the total loan will also cover the property’s deposit downpayment. The income threshold levels vary based on the household composition, and the applicant should not possess more than €23,300 in assets.
For further details and to check your eligibility, visit the Housing Authority’s website: https://housingauthority.gov.mt
Malta Tax and Customs
Administration Schemes:
Under this scheme, first-time buyers are currently exempt from paying stamp duty on the first €200,000 of the total property value. To benefit from this exemption, first-time buyers must declare in the contract that the property they are purchasing is their first immovable property. This declaration is verified through searches conducted by the notary; however, the notary is not responsible for any false declaration. The notary’s only responsibility is to submit the searches after registering the contract with the tax department, which are then reviewed by the Commissioner for Tax and Customs. This scheme is currently valid for contracts published until the 31st of December 2025—unless renewed.
Buyers and sellers purchasing and selling a property that falls under one of the following categories may benefit from income tax and stamp duty exemption on the first €750,000 of the property value:
a) situated in an Urban Conservation Area (UCA);
b) properties that have been built for more than 20 years and have been vacant for more than 7 years;
c) new properties built and finished as defined by the established guidelines and approved by the competent authority.
To benefit from this scheme, buyers and sellers must provide the documentation required by law to the notary, such as a UCA certificate issued by the Planning Authority in the case of a property in an UCA, which has to be attached to the deed. This scheme is valid for contracts published until the 31st of December 2026.
First-time buyers purchasing a residential property that falls under one of the following categories can apply for the grant for first-time buyers scheme:
a) situated in an UCA area;
b) properties that have been built for more than 20 years and have been vacant for more than 7 years;
c) new properties built and finished as defined by the established guidelines and approved by the competent authority.
For properties purchased in Malta that fall under one of these categories, the first-time buyer will receive a maximum grant of €15,000. For properties purchased in Gozo, of which the deed is signed after 1st January 2024, they will receive a maximum grant of €40,000. Buyers can apply through the servizz.gov online application. This scheme is valid till the 31st of December 2026.
Step-by-Step Guide for First Time Property Buyers
This step-by-step guide is also available for download through the button below.
