How to Get a Mortgage in Malta

Malta's Mortgage Market

Malta has a small but competitive mortgage market. Four main banks dominate residential lending: Bank of Valletta (BOV), HSBC Malta, APS Bank, and BNF Bank. Each has slightly different products and appetites, so it's worth shopping around.

Interest rates in Malta have historically been lower than the European average, partly because of strong banking sector capitalisation and a relatively low default rate.

Key Mortgage Terms

Loan-to-Value (LTV)

• Residents (first-time buyers): Up to 90% LTV — meaning you need as little as a 10% deposit (though 80% is more standard)
• Residents (non-first-time): Typically 70-80% LTV
• Non-residents: Usually 60-70% LTV
• Investment properties: Generally capped at 60-70% LTV

Loan Term

Most Maltese mortgages have a maximum term of 25 to 40 years, depending on the bank and the borrower's age. The loan must typically be repaid before you reach age 65-70.

Interest Rate Types

• Variable rate: Linked to the bank's base rate (which tracks ECB rates). Most Malta mortgages are variable rate
• Fixed rate: Some banks offer fixed periods (1-5 years), after which the rate reverts to variable. True long-term fixed rates are less common in Malta than in some European countries
• Current rates (2026): Variable rates typically range from 3.5% to 4.5%, depending on the bank and your profile. Fixed rates are slightly higher

Repayment vs Interest-Only

Standard repayment mortgages are the norm. Some banks offer interest-only periods for the first few years, especially for investment properties, but fully interest-only mortgages are rare.

Which Bank to Choose?

Bank of Valletta (BOV)

Malta's largest bank. Wide branch network, well-established mortgage products. Can be slower on processing. Good for straightforward applications.

HSBC Malta

Often competitive on rates. Efficient online process. Good for expats who may have HSBC accounts elsewhere. More structured in their approach.

APS Bank

Smaller bank with a reputation for more personalised service. Can be more flexible on edge cases. Worth approaching if the big banks aren't offering what you need.

BNF Bank

Formerly Banif Bank. Competitive on rates and sometimes more willing to lend on non-standard properties or to self-employed borrowers.

Tip: Approach at least two banks to compare offers. The difference in interest rates and terms can save you thousands over the life of the loan.

Documents Required

Prepare these before you apply:

For Employed Borrowers:

• Last 6 months of payslips
• Last 2 years of FS3 (tax computation) or equivalent from your home country
• Employment contract
• Bank statements (6 months)
• ID/passport
• Proof of address
• Details of any existing loans or financial commitments

For Self-Employed Borrowers:

• Last 2-3 years of audited accounts or tax returns
• Business registration documents
• Management accounts (current year)
• Bank statements (12 months — both personal and business)
• Tax clearance certificate

Property Documents:

• Signed konvenju (promise of sale)
• Property plans from the Planning Authority
• Energy Performance Certificate (EPC) — required by EU regulation

The Application Process

Step 1: Pre-Approval (Letter of Intent)

Before you start property hunting seriously, get a pre-approval from at least one bank. This tells you how much you can borrow and shows sellers/agents you're a serious buyer. Pre-approval is not binding — it's an indication based on your financial profile.

Step 2: Formal Application

Once you have a signed konvenju, submit a formal mortgage application with all required documents.

Step 3: Bank Valuation

The bank sends an independent valuer to assess the property. The loan amount is based on the lower of the purchase price or the bank's valuation. If the bank values the property lower than your purchase price, you'll need to cover the difference from your own funds.

Step 4: Underwriting

The bank's credit team reviews your application, income, and the valuation report. They check your debt-to-income ratio (typically they want your total monthly debt payments to be under 40-50% of your net income).

Step 5: Mortgage Offer

If approved, the bank issues a formal mortgage offer (sometimes called a sanction letter). This details the amount, term, rate, and conditions. You typically have 30-60 days to accept.

Step 6: Bank's Legal Review

The bank's own lawyer reviews the notary's title searches. This is a separate check from the notary's work and can add a few weeks.

Step 7: Signing

The mortgage deed is signed at the same time as the final deed of sale. The bank releases the funds to the seller, and the property and mortgage are registered simultaneously.

Additional Costs

• Life insurance: Required, assigned to the bank. Cost depends on your age and the loan amount. Budget €300-€1,000/year
• Home insurance: Required. Covers the building against fire, natural disasters, etc. Budget €200-€500/year
• Bank arrangement fee: Some banks charge a one-time fee (€300-€1,000) for processing the mortgage
• Valuation fee: €250-€500, paid by the borrower

Tips for a Smooth Mortgage Process

• Get your documents in order early — missing paperwork is the most common cause of delays
• Don't change jobs during the application process if possible — banks want to see employment stability
• Clear any small debts (credit cards, personal loans) before applying to improve your debt-to-income ratio
• Be honest on the application — banks verify everything. Discrepancies will delay or kill your application
• Factor in all costs — the mortgage payment is just part of the picture. Add insurance, condo fees, maintenance, and taxes
• Consider overpayment options — most Maltese mortgages allow overpayments without penalty. This can save significant interest over the loan term

First-Time Buyer Benefits

If you're a first-time buyer in Malta, you benefit from:

• Reduced stamp duty — exempt on the first €200,000 of the purchase price
• Higher LTV — some banks offer up to 90% for first-time buyers
• Government grants — check for current first-time buyer schemes, which have historically included direct financial assistance for qualifying purchases