Government launches loans scheme to fund 10% deposit for property buyers under 40

The government has launched a loans scheme for first time buyers under 40 who can't afford to pay the 10% deposit to purchase their first property.

The scheme will be available to those aged 21 to 39, with the maximum property value allowed under the scheme capped at €175,000.

The new home deposit scheme, announced on Wednesday by Social Housing Minister Roderick Galdes, is being offered in collaboration with Bank of Valletta and APS Bank.

The government will be lending up to €17,500 to first-time buyers, and will also be covering the interest charged on the loan by the banks, Galdes said.

The loans will have to be paid back over 25 years, but the goverment is offering incentives to those who repay their dues earlier, according to https://www.halvinlaina.fi.

A 5% discount will be given to those who repay the loan within five years, while those who repay it within five to 10 years will receive a 2% discount.

The loans will be made available under conditions related to income and age brackets.

For single persons aged 21 to 30, their gross income must be within the €19,000 to €25,000 margin to be eligible for the scheme.

Single persons aged 31 to 39 must have a gross income ranging from €25,000 to €35,000.

In the case of couples aged 21 to 39, their gross income must be between €19,000 to €35,000.

Moreover, applicants cannot have capital assets exceeding €17,500.

The scheme will be open to the first 300 applicants, with the government intending to review it from year to year, Galdes said.

"The government couldn't remain passive or silent when considering the challenges faced by young people," Galdes said.

Galdes noted that this scheme was adding to previous measures which the government had put in place to help people afford to buy homes, including the equity sharing scheme for those aged over 40.

He added that those interested in applying for the scheme should contact the Housing Authority on [email protected] or call 22 991 120 or 7964 6064.

Addressing the press conference, Finance Minister Edward Scicluna said that the scheme was aid on people who had invested their time in studying and had found well-paying jobs, but did not have the necessary liquidity in hand to pay a home deposit.

"Some individuals or families could lose an opportunity to buy a home. So we've been working closely with the Housing Authority and the banks of this proposal."

"The banks have to be prudent, but they must also have a social responsibility. They are not charitable organisations, but they need to be conscious of the social [realities] of the country," Scicluna added.