A very smart idea is to check with your bank first if you’re contemplating getting a home in Malta. This step is important because a lot of first-time buyers usually make the mistake of searching for property first. As soon as they have found the house, they head to a bank to try to get a loan only to be turned down. This huge mistake could result in frustration and disappointment if you realize that your bank refuses to lend you the required amount.
In this article, we will give you a brief guideline regarding the documentation required by Malta banks and what banks expect from you all through the loan duration. Basically, the home loan procedure in Malta is quite similar to every bank. It is important that you choose the right home and this is dependent on the property’s condition and the purpose for which it is being purchased.
For Residents (including EU residents residing in Malta)
As a resident of Malta, you will find flexible loans which you give you about 90% purchase coverage and which comes with long repayment periods numbering into more than 40 years. Then again, the interest rates are very competitive. For residents who are looking to buy a home with their partner, banks usually consider the disposable income of both persons.
It is possible to find loans that can grant you about 80% purchase coverage, although, this is a subjective evaluation.
- A current pay slip
- Evidence of income
- Property value estimate by an architect
- Permits & plans
- Financial commitment records if any
- Copies of borrower’s identity card
- Preliminary agreement copies in cases where the applicant does not yet hold an account with the bank
- Reference of character where applicable
- Life and building insurance policies
When it comes to non-residents in Malta applying for a mortgage, the documentation required may not be limited to only what is listed above, and this will depend on the conditions of your application.
Conditions for offering home loans by banks
- Residents can get up to 90% coverage of the property’s value
- Non-residents can get up to 80%
- You can get preferential rates mostly during the first years or for loans of high worth
- You are to make monthly repayments worth 30% of your gross income.
- Repayment terms are very flexible and go as high as 40 years.