How do I obtain a Bank Loan in Malta?
Once the Promis of Sale is signed, you will need to provide the bank with the following documents in order to apply for a bank loan to purchase a property in Malta or Gozo:
- A recent pay slip and FS3 (Annual Employee Statement of Earnings reconciliation) as evidence of income*An architect’s estimate of the property value
- Any building permits and plans (these docuemtns would be provided by ELZAN Properties)
- Records of any existing financial commitments, including credit card debt and any other loans
- A photocopy of the applicant’s ID card
- A copy of the preliminary agreement
- If the person applying for a loan is not already an account holder with the bank, a character reference might also be necessary
- A complete life insurance policy is required for any home loan, as is a building insurance policy.
Generally the bank will provice 90% funding, payments are based on 30% of your net combined income and the load term will be a maximum of 40 years up to the age of 65 years.
How much will stamp duty cost?
- The standard rate of Stamp Duty is 5%
- Gozo – residential properties bought in Gozo qulaify for a reduced rate of stamp duty at 2% as long as the promise of sale is signed and registered in 2017 with the Inland Revenue Department.
- There is a new scheme being introduced in the Budget 2018 for second-time buyers, where the stamp duty paid will be reduced by up to €3,000. Also if the buyer is disabled, the reduction will go up to a maximum of €5,000.