Banks and Loans

Securing a loan in Malta and Gozo can all be managed through one of the islands’ top rated banks.

Getting a loan in Malta requires a number of official documents that may differ from one bank to another, we’re here to help you with any of your questions to secure your promise of sale with Simon Mamo, so get in touch with us today for more information or speak to your preferred bank directly.

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Property Financing

Once you purchase the property of your dreams, you need to finance it. This can either be achieved by using your own funds or by taking a loan from any local bank based in Malta. The cost of a loan at any point in time varies from one bank to another.
At Simon Mamo, we offer a convenient service to assist you in financing your property by doing the work for you! This hassle-free service that we can provide you with, seeks to simplify the process of taking out a property loan, either for your first property, vacation property or for a rental property.
Our connections run deep in the financing industry with professionals focused on obtaining a real-time quote from all banks in Malta advertising home mortgages. Our intention here is to assist you in comparing different credit deals available on the market which will lead to a cost-effective way of financing your property. Once you decide which bank to choose, your designated real estate expert at Simon Mamo will help you through the documentation process to ensure all your documents are up-to-date for all your bank visits

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Detailed Guide to Applying for a Home Loan in Malta

When considering a home loan in Malta, the preparation phase is crucial. Understanding the required documentation and the loan application process can significantly ease your journey toward homeownership.

Required Documentation:

The list of documents needed when applying for a home loan in Malta is comprehensive. It ensures that the bank has all the necessary information to assess your loan application accurately. Here’s a detailed breakdown:

  • Identity Verification: A valid ID card or passport is mandatory. If your permanent address isn’t listed on your ID, additional proof of residence will be required​​.
  • Proof of Income: For employed individuals, the last three months’ payslips along with the FS3 form. Self-employed persons need to present their last two income tax returns ​​.
  • Property Information: This includes the preliminary agreement or deed of purchase and an architect’s valuation report. These documents help the bank assess the value of the property you intend to purchase ​​.
  • Financial Commitments: Details of any existing loans, including credit cards or other borrowings, are essential. They allow the bank to understand your financial obligations and how they impact your borrowing capacity .
  • Joint Application Details: If applying with someone else, their documentation will also be required. This can improve your loan eligibility by combining incomes.

Understanding Loan Terms and Conditions:

The terms of your home loan, including the interest rate, overall cost (APRC), loan-to-value ratio (LTV), and maximum term, are influenced by your personal circumstances and the property’s value . For example, HSBC Malta offers competitive terms for both primary and secondary residences, with a detailed explanation of their Classic Home Loan and HomeStart products available on their website ​​.


Government Schemes and Incentives:

Malta offers several schemes to assist first-time buyers and those looking for affordable housing options. These schemes can significantly reduce the initial financial burden of purchasing a home:

  • 10% Deposit Scheme: Aimed at making homeownership more accessible by reducing the required deposit .
  • First-Time Buyer Scheme: Offers incentives such as reduced stamp duties to encourage homeownership among first-time buyers .
  • Social Housing and Affordable Housing Initiatives: These programs provide support for individuals and families who meet specific criteria, making housing more accessible to all parts of the community .

Tips for a Smooth Home Loan Application Process

  • Start Early: Begin the loan application process before you start looking for a property. Knowing how much you can borrow will guide your property search .
  • Compare Offers: Don’t settle for the first loan offer you receive. Compare terms from different banks to find the best deal .
  • Consider the Future: Think about how changes in interest rates could affect your repayments. Fixed-rate options can offer stability in the early years of a loan .
  • Seek Professional Advice: Don’t hesitate to consult with real estate experts and financial advisors. Simon Mamo Real Estate, for example, can provide guidance and support throughout the process, ensuring you find a property and a loan that best suit your needs and financial situation.

Legal and Regulatory Considerations

When embarking on the journey to purchase a home in Malta, understanding the legal framework is crucial. The process typically begins with signing the Preliminary Agreement (Konvenju), a legally binding contract between the buyer and seller agreeing on the sale terms and a set timeline for the final deed. This step is crucial as it legally secures the property purchase, subject to due diligence and obtaining any necessary permits.

Due Diligence is a comprehensive review conducted to ensure the property’s legal standing, including clear title, no outstanding debts, and compliance with local planning and zoning laws. This step often involves a detailed property survey to identify any legal or structural issues that could affect the purchase.

The role of the Notary in Malta is to oversee the transaction, ensuring all legal aspects are covered, including the research of the property’s history, preparation of the contract, and the filing of the application for the acquisition of immovable property if the buyer is a non-resident. Choosing a reputable notary who specialises in property law is vital for a smooth transaction.

For further guidance and to find legal advisors specialising in Maltese property law, consulting legal directories and seeking recommendations from the Chamber of Advocates Malta can be a good starting point.

Insurance Needs

Purchasing a home is a significant financial commitment, and securing the right insurance is essential to protect your investment. When taking out a home loan in Malta, Building Insurance is typically required. This insurance covers the structure of your home against damage from events like fires, floods, and other disasters. It ensures that, should anything happen to the physical structure of your property, you are covered for repairs or rebuilding.

Life Insurance is another commonly required policy. This insurance guarantees that, in the event of your untimely death before the home loan is fully repaid, the remaining balance of the loan will be settled, thereby not burdening your family or dependents with the debt.

The specifics of required insurance policies can vary depending on the lender, so it’s important to consult with your bank or financial institution to understand the exact requirements. Additionally, consulting with insurance brokers or directly with insurance companies can provide insights into the best policies to suit your needs, ensuring your new home and family are adequately protected.


For more comprehensive advice on insurance policies and navigating the legal aspects of buying a home in Malta, Simon Mamo Real Estate is here to help. Our team of experts can guide you through every step of the process, ensuring you’re well-informed and protected in your property journey. Whether you’re seeking advice on the right insurance coverage or need assistance with legal procedures and finding reputable notaries and legal advisors, we’re dedicated to providing you with the support you need. Reach out to Simon Mamo for expert guidance tailored to your unique situation.

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