4 STEPS TO GETTING PROPERTY LOANS IN MALTA
Virtually everybody in Malta dreams of owning their property someday. For persons who have the resources and do not need a loan to purchase their desired property Malta, that is a nice idea. However, most persons require loans to be able to materialize this dream. If this is your situation, there are four steps that can help you to kick-start your loan journey towards purchasing your property in Malta .
- Know your bank loan purpose
Regulation, as well as, documentation requirements that need compliance from you. To better understand them, it’s important that you first identify why you are making an acquisition. You need to identify the total amount that you need in funds and the percentage to be covered by the bank. Also, you must identify what purpose the property will serve. Will it be a residential property or business property? Will it require any conversion? Do you have any plans for part-financing or do you have an asset that can serve as collateral? Getting these questions answered will help you to have a direction and obtain the right information from your bank.
- Identify the coverage you are getting
Malta, many banks offer as much as 90% funding coverage for residents. For foreigners, however, they might get, at most, 80% funding coverage. This implies that foreigners who intend to purchase property in Malta will have to make use of more personal funds and pass through more checks to confirm that they are eligible.
- Get the right documents
You should contact a specialist in mortgaging when applying for a loan. This is to enable you to find out what documents are expected of you. Basically, the documentation required from applicants includes a valid identification, evidence of income, debt statements, property details, and insurance.
- Avoid issues
Unfortunate circumstances exist in which an applicant may be denied a loan. One of such circumstances is in cases where the applicant does not possess sufficient income. In this case, Malta banks will deny you a property loan. Oh, also, maybe another limiting factor. For persons that will be due for retirement before they can pay off the loan, adjustments will have to be made to the repayment period where allowed by the bank. Individuals who are unable to afford higher payments due to adjustments will have to find an alternative property that doesn’t incur many costs.