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Are you looking to get a mortgage in Malta? If so, then you’ve come to the right place!

In this article RHJ Accountants, part of RHJ Group, explore the secrets to unlocking the best mortgage deals in the beautiful Mediterranean island of Malta. They will provide you with all the information to make sure you get the best deal when it comes to securing a mortgage in Malta.

Want to understand taxes in Malta? Read this article

Understanding the property market

When it comes to getting a mortgage in Malta, it’s important to have a good understanding of the property market. Mortgages are quite different from those in other countries, so it’s crucial to familiarise yourself with the unique aspects.

The demand for properties in Malta has been consistently high in recent years, mainly driven by a strong economy and an influx of foreign investment. As a result, property prices have been steadily increasing, making it an attractive market for both local and international buyers.

It’s also worth noting that the mortgage lending criteria can be stricter, compared to other countries. Lenders typically require a higher deposit, around 20% to 30% of the property value. Plus, they may have specific requirements for the borrower’s income and financial stability.

Furthermore, the mortgage rates can vary significantly depending on the lender and the specific terms of the mortgage. It’s important to shop around and compare different mortgage offers to ensure you’re getting the best deal.

It’s important to be aware of any potential risks or challenges on the property market. For example, there may be restrictions on buying property in certain areas, such as designated tourist zones.


Finding the right lender for you

Finding the right lender is a crucial step in securing the best deal for your needs. With so many lenders to choose from, it can be overwhelming to navigate the options. However, by considering a few key factors, you can find a lender that is the perfect fit for you.

First and foremost, it’s important to do your research. Look for lenders who specialise in mortgages and have a good reputation on the market. You can check online reviews, ask for recommendations or consult with a mortgage broker who can help you find the best lenders based on your specific circumstances.

Next, consider the mortgage products and terms that each lender offers. Look for a lender who offers flexible terms that align with your financial goals. This may include options for variable or fixed interest rates, repayment terms, and any additional features or benefits that are important to you.

In addition, consider the customer service and support that each lender provides. Look for a lender who is responsive, transparent, and willing to answer any questions or concerns you may have. It’s also important to consider the accessibility of the lender, whether they have a physical branch or if they operate solely online.

Don’t forget to compare interest rates and fees from different lenders. Even a small difference in interest rates can make a significant impact on the total cost of your mortgage.


Calculating the costs

Calculating the costs is an essential step when it comes to getting a mortgage in Malta. Before committing to a mortgage, it’s important to have a clear understanding of all the costs involved to ensure you can afford the property and the mortgage repayments.

The first cost to consider is the deposit. Lenders typically require a deposit of around 20% to 30% of the property value. This means that if you’re purchasing a property for €200,000, you would need a deposit of €40,000 to €60,000. In addition to the deposit, there are other costs associated with buying a property. These include stamp duty, legal fees, notary fees, and valuation fees. Stamp duty is a tax that is levied on the transfer of property ownership and can range from 3.5% to 5% of the property value. Legal fees and notary fees will vary depending on the complexity of the transaction; ranging from 1% to 2%. Valuation fees are typically around €300 to €500.

Make sure to consider the ongoing costs of owning a property in Malta. This includes property taxes, homeowners association fees (if applicable), insurance, and maintenance costs. These costs can vary depending on the location and size of the property.

To calculate the total cost of your mortgage, it’s important to consider the interest rate and the repayment term. You can use an online mortgage calculator or consult with a mortgage broker to determine your monthly repayments and the total amount you will pay over the life of the mortgage.


How RHJ Accountants can help

Although we cannot help with your purchase to find a home in Malta, our team of qualified accountants can help you navigate the complex of taxation in Malta.

So once you have relocated to Malta, or are building up plans now for a relocation, make sure to schedule a free, initial consultation with our team so we can help you. Plus, if you need to find a suitable visa for your relocation make sure to reach out to RHJ Law!

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