New government scheme to provide up to €100,000 for property purchase

The new government ‘social loans’ scheme will provide the option of purchasing property from the private sector to people awaiting allocation in social housing who benefit from government subsidies but are in stable employment.

Presiding over the signing of the agreement on between MFSS and APS Bank, social solidarity minister Michael Farrugia explained that the government will convert the rent subsidy currently being administered to a subsidy on loan repayment.

“In this case, interested parties will be given up to €100,000 to buy property,” Farrugia said.

He said that research undertaken by the government through the Malta Development Association confirmed that a number of properties are available under this price bracket.

“We acknowledge the fact that rent has increased considerably, so much so that it is wiser to purchase property than to rent. The government feels that this is one of the many solutions to tackle this issue.”

APS CEO Marcel Cassar said described the scheme as an “innovative initiative” which will permit people who cannot afford to purchase property to do so.

He added that the bank will also be covering the 10% deposit demanded by sellers upon promise of sale, as well as the €100,000 in loans. The bank will also be removing charges related to architect fees, minimum tax and processing fees.

“The ministry went beyond what we expected by covering notary fees and ensuring that renting subsidies are not lost.

According to statistics, 900 of social housing applicants are in full time employment, while 400 of those receiving rent subsidies work full time.

The first people to be contacted regarding the scheme will be those who fall under both groups.

The new government ‘social loans’ scheme will provide the option of purchasing property from the private sector to people awaiting allocation in social housing who benefit from government subsidies but are in stable employment.

Presiding over the signing of the agreement on between MFSS and APS Bank, social solidarity minister Michael Farrugia explained that the government will convert the rent subsidy currently being administered to a subsidy on loan repayment.

“In this case, interested parties will be given up to €100,000 to buy property,” Farrugia said.

He said that research undertaken by the government through the Malta Development Association confirmed that a number of properties are available under this price bracket.

“We acknowledge the fact that rent has increased considerably, so much so that it is wiser to purchase property than to rent. The government feels that this is one of the many solutions to tackle this issue.”

APS CEO Marcel Cassar said described the scheme as an “innovative initiative” which will permit people who cannot afford to purchase property to do so.

He added that the bank will also be covering the 10% deposit demanded by sellers upon promise of sale, as well as the €100,000 in loans. The bank will also be removing charges related to architect fees, minimum tax and processing fees.

“The ministry went beyond what we expected by covering notary fees and ensuring that renting subsidies are not lost.

According to statistics, 900 of social housing applicants are in full time employment, while 400 of those receiving rent subsidies work full time.

The first people to be contacted regarding the scheme will be those who fall under both groups.