Start Smart: How to Budget and Finance Your First Property in Malta

Buying your first home is one of the most exciting decisions you’ll ever make, but it can also be overwhelming if you don’t plan your finances properly. Before falling in love with a sea-view apartment, it's important to understand what you can realistically afford. In this post, we’ll break down the costs, home loan options, and government schemes that can help make your dream a reality.

First time buyers

1. Assess Your Financial Health

Before starting the search or talking to any agents or banks, take a close look at your current finances:

• Savings: Most banks require a 10% deposit upfront from your own funds.

• Monthly Commitments: List all your ongoing expenses like loans, credit cards, and other obligations. These impact how much you can borrow.

• Other Costs: Beyond the deposit, expect additional expenses that can add 5%–9% on top of the property price.

💡 Let’s look at an example: For a €250,000 property, here’s an estimated cost breakdown:

Cost Item	Approx. % of Property Price	Estimated Cost (€)
Deposit (10%)	10%	€25,000
Notary Fees	1.5%–2.5%	€3,750–€6,250
Stamp Duty (First €200k exempt)	2%	€1,000
Architect Fees	0.5%–1%	€1,250–€2,500
Bank Fees	0.5%–1.5%	€1,250–€3,750
Life & Building Insurance	Varies (approx. €500–€1,000 yearly)	€500–€1,000/year

✅ Total Upfront Cost Range: €32,750–€39,500

🔍 Tip: Use Yitaku to calculate and search for your ideal property. Download app now

2. Explore Your Home Loan Options

Banks in Malta typically cover up to 90% of the property price via a home loan. The remaining 10% must come from your savings (unless you qualify for special schemes).

Your loan eligibility depends on:

• Your income and job stability

• Any outstanding debts

• Age and credit history

• Whether you’re applying alone or with a partner

  
  

🔍 Tip: Compare multiple banks interest rates, loan fees, APRC (Annual Percentage Rate of Charge), and repayment flexibility can vary significantly. You can do so by using Yitaku's advanced home loan calculator

Budgeting for first time buyers

3. Tap Into Government Schemes for your first property in Malta

First-time buyers in Malta benefit from several supportive schemes. Here are the key ones:

• 10% Deposit Scheme (Ages 21–39): If you qualify for a home loan but lack the deposit, the bank can issue a personal loan for the deposit, and the Housing Authority will pay the interest for you.

• Equity Sharing (Age 30+): If your loan isn’t enough, the Housing Authority can co-purchase up to 50% of the property interest-free, which you repay later.

• Stamp Duty Exemption: Save up to €10,000 on the first €200,000 of your property’s value.

• Post-Purchase Grants: Once you move in, you may also be eligible for additional grants (e.g., First-Time Buyer Grant, Adaptation Grant).

  
  

🌐 Visit housingauthority.gov.mt for full eligibility criteria.

4. Boost Your Borrowing Power

If your estimated loan is coming in short, here are ways to improve it:

• Lower your debts before applying

• Include overtime (if proven consistent over 12 months of payslips)

• Organise all required documents, including:

  • FS3 forms

  • 3–12 months of payslips

  • Employment contract

  • Tax returns if self-employed

  • ID/residence card

    
    

🔍 Tip: Many banks now accept virtual appointments. Still, an in-person visit will often give you a more accurate and personal assessment.

Buying your first property in Malta doesn’t start with browsing, it starts with budgeting. With the right financial preparation and support, you’ll avoid surprises and stay in control of your journey to homeownership.

🎯 Ready to see what you can afford? Try Yitaku’s free home loan calculator and explore properties that match your financial reality.

📲 Visit yitaku.com or download the app to take the first step toward buying your dream home.