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Saving Up for Your Deposit to Buy

It’s common knowledge that, before you buy property in Malta, you need to save up for your 10 per cent deposit. But how easy is it, and is anything stopping you from reaching your final goal?

Bank loan deposit

Whether you’re a first-time buyer or looking to buy your second home, as a second-time buyer, saving up for your initial deposit is usually the hardest part. 

Saving up for a bank loan deposit in Malta is a minimum of 10 per cent. That, of course, comes as no surprise as a property worth €250,000 would require the buyers to put together €25,000 – and that’s excluding the money needed for notaries, architects, and the whole shebang. Read more in detail about obtaining a bank loan to buy property in Malta.

Bank loan criteria

In order to buy Malta and Gozo real estate, the bank requires a minimum of a 10% deposit as a criteria as they tend to on average shell out 90% as a mortgage for locals and 80% for foreign buyers, meaning that the deposit required maybe 20%. 

This all depends on a number of items, which remains at the discretion of the bank you may utilise. Thus, speaking to the bank first is key. This is so you can understand exactly what you need to secure a loan for your Malta property.

Bank loan criteria

Saving up the money

On average, individuals take up to eight years to save up enough money for their deposit – which, if we’re sticking to the €250,000 property-example, would mean an average of just over €3,000 set aside per year. That may not seem like a lot, but it’s becoming harder year upon year as the cost of living in Malta – particularly rent – keeps going up.

It is for this reason that many people are turning to family members – usually their mothers and fathers – for help. 

Legal implications

Of course, the only other option here to buy property in Malta is to save more money over a longer period of time, and to continue living with your parents well into your late 20s or early 30s to save even more money on rent, bills and other expenses. Moreover, being part of a couple purchasing a property for sale in Malta together means that the amount needed to purchase a home is halved for each individual.