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Malta – Property Financing

Mortgages for Foreign Nationals in Malta

Malta, with its stunning Mediterranean location and growing real estate market, is an attractive destination for property investment. Whether you are a local or a foreign national, obtaining a mortgage is a common way to finance your property purchase. However, if you are a foreign national, you may wonder if local banks or other lenders are willing to issue mortgages to non-residents in Malta.

Fortunately, Malta has a welcoming attitude towards foreign property buyers, and local lenders are generally open to providing mortgages to non-residents. Several reputable banks and financial institutions offer mortgage solutions to foreign nationals interested in purchasing property in this beautiful island nation.

Local Lenders Offering Mortgages in Malta

When it comes to securing a mortgage in Malta, there are several local lenders you can consider:

  • Bank of Valletta (BOV): Bank of Valletta is one of Malta’s largest and most established banks. They offer a range of mortgage products, including options for foreign nationals. BOV has a dedicated team to assist non-resident buyers with their mortgage applications.
  • HSBC Malta: HSBC is a well-known international bank with a presence in Malta. They provide mortgage services to both residents and non-residents. HSBC offers competitive interest rates and tailored mortgage solutions.
  • Malta Financial Services Authority (MFSA): While not a lender themselves, the MFSA is the regulatory authority overseeing financial services in Malta. Their website is a valuable resource for understanding the regulatory environment and requirements for mortgages in Malta.

These local lenders have experience working with foreign nationals and can guide you through the mortgage application process, helping you choose the right mortgage product for your needs.

Minimum Deposit Requirements for Property Purchase

One of the key factors to consider when buying property in Malta, regardless of your nationality, is the minimum deposit requirement. The deposit, also known as the down payment, is a substantial upfront payment that you must make to secure your property purchase. The specific amount of the deposit can vary depending on several factors, including the lender’s policies, the property’s value, and your financial situation.

Typically, local banks and lenders in Malta may require a minimum deposit of around 10% to 20% of the property’s purchase price. However, it’s important to note that deposit requirements can vary, so it’s advisable to check with your chosen lender for the most up-to-date information. The deposit serves as a commitment to the property purchase and provides security for the lender.


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Additionally, some developers and real estate agents in Malta may offer financing packages with lower deposit requirements for specific properties or developments. These packages can be attractive to both local and foreign buyers, so it’s worth exploring different options to find the best fit for your financial situation.

Responsibility for Outstanding Debts on the Property

When you become a property owner in Malta, whether you are a local or a foreign national, you take on certain responsibilities, including the potential obligation to address outstanding debts associated with the property. Understanding these responsibilities is essential to a smooth property transaction.

In Malta, debts related to the property, such as property taxes, utility bills, or unpaid loans secured against the property, are typically tied to the property itself rather than the previous owner. When you purchase a property, you may inherit these existing financial obligations.

Before the sale is finalized, a legal process takes place to ensure that any outstanding debts related to the property are settled by the seller. The notary or legal representatives involved in the transaction will conduct thorough checks to identify and clear any existing financial liabilities. This process ensures that you take ownership of the property without the burden of unresolved debts.

It’s crucial to engage with experienced legal professionals and seek advice from your lender to ensure that all necessary steps are taken to protect your interests during the property purchase in Malta. A well-informed and diligent approach can help you avoid any unexpected financial obligations and ensure a smooth transition to property ownership.

Conclusion

Buying property in Malta as a foreign national is a feasible and attractive option, given the welcoming attitude of local lenders and the beautiful real estate opportunities the country offers. With the guidance of reputable local banks and financial institutions, a clear understanding of deposit requirements, and proper legal assistance, you can navigate the process successfully and make a sound investment in the Maltese property market.


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