Interest Subsidy Scheme

Overview

This scheme aims to provide subsidy on interest rates on loans for the purchase of the first residence.  A subsidy up to a maximum of 1% is given on the interest rates on loans from banks for the purchase of the first residence. 

Subsidy will be given up to a maximum of 1% on the subsidy base rate as established by the Central Bank of Malta or the European Central Bank if this is over 3.75%.  This subsidy will be given during the first 10 years of the loan repayment. The amount of loan on which a subsidy on interest can be given on this scheme should not exceed the maximum amount of € 93,175 / Lm 40,000.  The value of the finished property should not exceed € 116,468.67 /Lm 50,000.

This scheme is open to first time buyers who have signed or will be signing the deed of purchase after the 16^th of October 2007.

Who Can Apply  

• Categories

1. Married couples/engaged couples (both must be over 21 years old on date of application);

2. Single parents with unmarried children living with them (over 21 years old);

3. Persons with a disability (over 18 years old);

4. Single persons who left institutional care (over 18 years old);

5. Single persons (over 24 years old);

6. Separated persons without children who reside with them the whole time (over 21 years old);

• The applicant is a Maltese citizen or a citizen of the EU acquiring his/her first residence in Malta or in another country in the EU.

• The applicant has been permanently residing in Malta for at least 12 months in the previous 18 months before submitting the application form.

• The applicant is purchasing his/her first residence and has signed or will be signing the deed of sale after the 16^th of October 2007. Legally separated applicants who wish to purchase their first residence after their separation are eligible.

• The applicant should not own any other property by title of ownership or lease; however, if in the absolute discretion of the Housing Authority the occupied premises are not adequate for accommodation of the applicant/s and his family, or because of legal, technical or logistic problems cannot be used for habitation or disposed of in a relatively short period so as to ascertain its value, the applicant may be considered.

• The applicant does not benefit under the Shared Ownership and Equity Sharing Schemes

Process of Application

• Applicants call at HA and produce a home loan quotation from their bank showing that they qualify for a loan

• Applicants are informed about the main scheme conditions and are given an application

• Applicants produce application completed and signed together with all relevant documents including a copy of the Preliminary Agreement and a copy of Architect’s Report (intended for their bank)

• Housing Authority issues approval to applicants

• Applicants call at their bank with our approval

• Bank issues Sanction Letter

• Housing Authority appears on deed together with applicant and bank

With the application form an administrative fee of € 23.29/Lm 10 is to be paid

Values displayed in Maltese Lira are based on the rate of € 1 = Lm 0.429300 and are for information purposes only.