Getting a mortgage in Malta: what buyers need to know

Which banks offer mortgages in Malta?

The main mortgage lenders in Malta are Bank of Valletta (BOV), HSBC Malta, APS Bank, and MeDirect. Lombard Bank and BNF Bank also offer home loan products. Interest rates and product terms differ between lenders, so comparing offers is important.

There is no broker market in Malta comparable to the UK or Germany. Most buyers approach banks directly, though a small number of financial advisers facilitate multi-bank comparisons.

Why you should approach more than one lender

Two lenders can look at the same applicant and the same property and reach different answers. They may offer different loan-to-value ratios, different interest rates, different fixed periods and different fees, and one may be more comfortable than the other with your type of income or with the property you want to buy. Speaking to at least two, and ideally three, banks before you commit gives you something to compare and some room to negotiate.

What to ask each bank

• What is the maximum loan-to-value ratio for my situation (resident, non-resident, first-time buyer, investor)?
• What interest rate is offered, is it fixed or variable, and for how long is a fixed rate guaranteed?
• What is the arrangement fee, the valuation fee and any other charge payable before or at drawdown?
• Are there early repayment charges, and can I make partial overpayments without penalty?
• How long does approval take once the application is complete?
• Does the bank have any restrictions on the type, age or location of property it lends against?
• Is a Maltese bank account required, and will the bank offer a package of other products at a better rate?

Banks and financial advisers

A financial adviser can save time by comparing several lenders on your behalf, but check how the adviser is paid and whether they are licensed. Whichever route you choose, the decision and the loan agreement remain yours: read the offer letter in full and ask the bank to explain anything that is unclear before you accept it.

Before you walk into the bank

Arrive prepared. Know the price range you are considering, the deposit you can put down, your net monthly income and your existing commitments, and bring your identification. Ask for the indication in writing and note the date, because rates and conditions can change between your first meeting and your formal application. A bank that explains its terms clearly, answers questions without pressure and puts its offer on paper is usually a better partner than one that rushes you towards a decision.

Eligibility: residents vs non-residents

Maltese residents and EU citizens resident in Malta

Banks will lend to Maltese citizens and EU nationals with a verifiable income and a stable employment history in Malta. Self-employed applicants face stricter scrutiny — typically requiring two to three years of audited accounts.

For employed applicants, lenders look at the type of contract, the length of service and the stability of earnings. A permanent contract with an established employer is the simplest case. A probation period, a recent job change or a fixed-term contract does not rule out a loan but may mean extra documents, a lower amount or a delay until the situation settles. Commissions, bonuses and overtime are often counted only in part, and usually only if they have been paid consistently for a period.

Non-resident EU citizens

EU citizens who are not resident in Malta can obtain a mortgage, but lenders will typically require a higher deposit (lower LTV), proof of income from their country of residence, and sometimes a Maltese bank account established in advance.

Expect the bank to ask for translated and certified documents if your records are not in English, and to take longer to verify income and credit history from abroad. Starting early, and asking the bank which documents it will accept, can save weeks.

Non-EU citizens

Non-EU citizens can also obtain mortgages from some Maltese banks, though the product range is more limited and the deposit requirement is generally higher. Additionally, non-EU buyers typically need an AIP permit before the property purchase can proceed, adding time to the process.

If you need both a mortgage and an AIP permit, build both into the promise of sale as suspensive conditions and allow for the longer of the two timelines. The permit and the loan can proceed in parallel, but the final deed cannot be signed until both are in place.

Joint applications

Couples and co-buyers often apply together. The bank assesses the combined income and commitments of all applicants, and all of them become responsible for the whole loan, not only their share. Check that each applicant understands this, and think about what would happen to the repayments if one income stopped. If only one partner is employed in Malta or the incomes come from different countries, tell the bank at the start so it can explain which documents it needs from each person.

Age and the length of the loan

Lenders usually set a maximum age at the end of the loan, often in the mid to late sixties or around seventy depending on the bank. The older you are when you apply, the shorter the term available to you and the higher the monthly payment for the same loan. Younger buyers have more flexibility but should still avoid the longest terms where they can, because of the extra interest.

Common reasons for a refusal or a smaller loan

• Income that is too low or too irregular for the loan requested.
• Existing debts that leave too little room for the new repayments.
• A valuation below the price, which reduces the amount the bank will lend.
• A property with title, planning or structural problems that the bank is not prepared to accept as security.
• Gaps or inconsistencies in the documents, or unexplained deposits in the bank statements.
• A deposit that is smaller than the lender requires for your profile.

If you are refused, ask the bank for the reason and whether a smaller loan, a longer term, a co-applicant or a different property would change the answer. Another lender may assess the same facts differently, so a refusal from one bank is not the end of the road.

• AIP permit for non-EU buyers
• Complete buyer's guide

Loan-to-value ratios

Maltese banks typically lend up to 80% of the property value (80% LTV) for primary residences. For investment properties or second homes, the maximum LTV is usually 75% or lower.

First-time buyers may access up to 90% LTV under specific bank schemes, though these come with stricter income and property conditions. Confirm availability directly with lenders, as these products change.

• Primary residence (standard): up to 80% LTV
• Primary residence (first-time buyer scheme): up to 90% LTV (some lenders)
• Investment / buy-to-let: up to 70–75% LTV
• Non-resident buyers: typically 60–70% LTV

How LTV works in practice

The loan-to-value ratio is calculated against the lower of the price you agree and the value the bank's own valuer puts on the property. If you agree to pay €300,000 and the valuer says the property is worth €285,000, an 80% LTV loan is €228,000 and not €240,000, so you have to fund the difference from your own money. This is why a low valuation is one of the most common reasons buyers need more cash than they planned.

Stamp duty, notary fees, arrangement and valuation fees and moving costs come on top of the own-funds column. The figures illustrate the arithmetic; the LTV you are offered depends on the lender and your profile.

Buy-to-let and second-home loans

Lenders treat investment loans as higher risk, which is why the maximum LTV is lower and the rate may be higher. They may also assess the expected rent as part of the application, or rely only on your own income. If you are buying to let, ask the bank how it will count the rental income, whether it expects a minimum rent to loan-payment ratio, and whether the loan can be taken in your own name or through a company.

Raising a bigger deposit

A larger deposit reduces the loan, the monthly payment and often the interest rate you are offered. If you are a few thousand euros short, consider waiting and saving, choosing a slightly cheaper property, or asking family members whether they can help with a gift, which the bank and notary will want to see documented. Avoid borrowing the deposit on a personal loan, because lenders count it as a commitment and may refuse the mortgage.

• Mortgage repayment calculator

Documents required

Most Maltese banks request a standard package of documents at the application stage:

For employed applicants

• Copy of passport and ID card.
• Last 3–6 months of payslips.
• Last 3–6 months of bank statements.
• Employment contract or employer's letter confirming position, salary, and tenure.
• Last 2 years of tax returns (FS3 or equivalent).

For self-employed applicants

• Last 2–3 years of audited accounts.
• Last 2 years of income tax assessments.
• VAT registration certificate.
• Last 6 months of business bank statements.

Property documents

• Published deed or preliminary sale details.
• PA permit reference or planning history.
• EPC.
• Bank-appointed property valuation (the bank instructs their own valuer).

Tips for assembling the file

Create a folder, paper or digital, with every document before you apply, and check that names, addresses and dates are consistent across them. Mismatches, such as a different spelling of your name or an old address on a statement, are a common cause of delay. If you receive income from several sources, prepare a short summary of each, with proof, so the underwriter can follow it without questions.

Expect the bank to ask about your existing commitments, such as car loans, personal loans and credit card balances, and about your regular outgoings. Be accurate: the bank can see much of this from credit records, and omissions create doubt about the rest of the application.

Fixed vs variable rates

Maltese banks offer both fixed-rate and variable-rate mortgages. Fixed rates provide certainty of repayment for the fixed period (typically 2, 5, or 10 years, after which they revert to a variable rate). Variable rates track the bank's base rate or, increasingly, the ECB reference rate.

As of mid-2026, mortgage rates in Malta ranged from approximately 3.5% to 5% depending on the lender, loan term, LTV, and whether the rate is fixed or variable. Confirm current rates directly with lenders — they change frequently.

The total cost of credit (TCC) and the Annual Percentage Rate (APR) are standardised disclosures in the EU; use the APR to compare products across lenders rather than the headline interest rate.

What a difference the rate and the term make

The table below shows the monthly repayment on a €200,000 loan at different interest rates and terms. It is a plain repayment calculation, with equal monthly payments and a constant rate, and is not an offer from any bank.

Two things stand out. A longer term lowers the monthly payment but increases the total interest paid over the life of the loan, so stretching the term to afford a bigger loan is expensive. And a rise of one percentage point in the rate adds roughly €100 to €110 a month to a €200,000 loan over 25 years, which is why it is worth testing your budget against a higher rate.

Choosing between fixed and variable

• A fixed rate suits buyers who value certainty and have a tight budget: you know exactly what you will pay for the fixed period.
• A variable rate may start lower and can fall if rates fall, but it can also rise, and your payment rises with it.
• Check what happens at the end of a fixed period: the loan normally reverts to a variable rate, and some lenders allow you to fix again, sometimes with a fee.
• Ask whether you can switch lenders or products later and what it costs, so that you are not locked in if better terms become available.

Overpayments and early repayment

If you expect to have spare cash, ask whether you can make partial overpayments without a penalty and whether there is a limit per year. Reducing the capital early cuts the interest you pay. If you plan to sell within a few years, check any early repayment charge, because it will be deducted from your sale proceeds.

The real cost of a mortgage

The interest rate is only part of what a mortgage costs. Add the arrangement fee, the valuation fee, legal and notary costs linked to the loan, any registration or hypothec fees, and insurance. Ask the bank for a full written list of these charges and for the total amount you will repay over the life of the loan. When you compare offers, compare the total cost and the APR, not only the monthly payment.

Insurance linked to your loan

Lenders normally require building insurance on the property for the life of the loan, and many strongly encourage or require life insurance or similar cover so that the debt can be repaid if the borrower dies. Compare the cost of insurance bought through the bank with quotes from independent insurers, making sure the cover meets the lender's requirements before you switch.

Approval timelines

Mortgage approval in Malta is slower than in some other EU markets. From submitting a complete application to receiving a formal offer letter, expect:

• Employed applicant, straightforward case: 3–5 weeks.
• Self-employed applicant or complex income: 5–8 weeks.
• Non-resident applicant: 6–10 weeks.

The Konvenju for the property is usually signed subject to a mortgage suspensive condition. The bank's timeline should therefore be factored into the Konvenju deadline.

The stages of an application

1. Initial enquiry and pre-approval: the bank gives an indication of how much it might lend based on your income and commitments.
2. Formal application: you submit the full set of documents once you have agreed to buy a property.
3. Valuation: the bank instructs its own valuer to assess the property and the loan amount depends on the result.
4. Credit decision: the bank's credit team reviews your file and the valuation and issues an offer, sometimes with conditions.
5. Offer letter: you read and sign the offer, and the bank confirms the amount, rate, term and fees.
6. Drawdown: the notary and the bank coordinate so that the funds are available at the final deed.

What can slow things down

Incomplete documents, inconsistent information, a low valuation, a property with planning or title issues, and a busy period at the bank are the usual causes of delay. Ask your bank for a checklist at the start and respond quickly to questions. If a delay threatens the deadline in the promise of sale, speak to your notary early about an extension rather than waiting until the last week.

An example timeline for a typical purchase

These are illustrative timings built from the ranges above. Your own timeline depends on the bank, the completeness of your file and the property.

Preparing a strong application

• Get a salary certificate or employment letter before approaching the bank — it speeds the initial assessment.
• Ensure your bank statements show a consistent pattern of saving (erratic deposits or large unexplained credits attract scrutiny under anti-money-laundering checks).
• Pay down existing personal loans or credit card balances before applying — your total debt-service ratio affects the amount you can borrow.
• Avoid changing employer in the 3 months before applying; banks prefer stable employment history.
• Commission a pre-application valuation from the bank's approved valuers if the property price is at or near the limit of your budget — a low valuation affects how much the bank will lend.

Build a track record of saving

Lenders like to see that you have saved regularly towards your deposit, because it shows discipline and that the funds are yours. Move your savings into an account that shows a clear history, and keep records of any gift or inheritance you plan to use, since the bank and the notary may ask for evidence of the source of funds.

Reduce your commitments before applying

Close credit cards you do not use, repay small loans where you can, and avoid taking out new credit, such as a car loan, in the months before you apply. Each commitment reduces the amount a bank will lend, and a new one can appear on your record just as the underwriter looks at it.

A realistic test of affordability

Before you apply, work out what you would pay each month, then ask whether you could still manage if the rate rose by one or two percentage points, if one income fell, or if you had an unexpected bill. Include the running costs of the property: utilities, building insurance, maintenance and any ground rent. If the answer is uncomfortable, a smaller loan or a cheaper property is the safer choice.

Protect yourself with the promise of sale

Make the promise of sale conditional on the mortgage being approved within a set period and for a defined amount. Without that condition, you could lose your deposit if the bank refuses. Ask the notary to draft the condition clearly, including the date by which you must show the bank's decision.

Remortgaging later

Your first mortgage does not have to be your last. Once a fixed period ends, or if rates fall or your income rises, you may be able to switch to a better product with the same bank or move to another lender. Ask about the costs of switching, such as early repayment charges and new fees, and compare them with the saving. Keep your documents up to date so a future application is quicker.

A checklist for the weeks before you apply

1. Check your credit position and clear any small debts.
2. Gather payslips, bank statements, tax returns and identification.
3. Decide your maximum price on the basis of a rate higher than today's offer.
4. Contact at least two banks and compare their written indications.
5. Choose your notary and discuss the promise of sale and the mortgage condition.
6. Keep records of the source of all funds you plan to use.

• Estimate monthly repayments
• First-time buyer guide

Related

• First-time buyer guide
• Complete buyer's guide
• Mortgage calculator
• Stamp duty calculator

Frequently asked questions