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. However, it can also be overwhelming if you don’t plan your finances properly. Before falling in love with a sea-view apartment, it's crucial to understand what you can realistically afford. In this post, we’ll break down 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 your search or talking to agents and banks, take a close look at your current finances.

Savings

Most banks require a 10% deposit upfront from your own funds. This means you need to have some savings set aside.

Monthly Commitments

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

Other Costs

Beyond the deposit, expect additional expenses that can add 5%–9% on top of the property's price. Here’s an estimated cost breakdown for a €250,000 property:

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 usually 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

• Your age and credit history

• Whether you are applying alone or with a partner

  
  

🔍 Tip: It's essential to compare interest rates, loan fees, APRC (Annual Percentage Rate of Charge), and repayment flexibility. These can vary significantly. Use Yitaku's advanced home loan calculator to help.

Budgeting for first time buyers

3. Tap Into Government Schemes for Your First Property in Malta

First-time buyers in Malta can 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. In this case, 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

You can 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).

🌐 For full eligibility criteria, visit housingauthority.gov.mt.

4. Boost Your Borrowing Power

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

Lower Your Debts

Before applying for a loan, try to reduce your existing debts.

Include Overtime

If you have proven consistent overtime on your payslips for 12 months, be sure to include that.

Organize Your Documents

Prepare 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. However, an in-person visit can often give you a more accurate and personal assessment.

Conclusion

Buying your first property in Malta doesn't start with browsing; it begins 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.