Key facts
- Step 1
- Approval in principle
- Protect your deposit
- Loan condition in the konvenju
- Bank checks
- Income, source of funds, valuation
- Usually required
- Life and buildings insurance
- Security
- Hypothec registered on the property
- Tax relief
- Interest deduction may be available
A home loan in Malta works much as it does elsewhere in Europe: the bank assesses you and the property, lends a proportion of the value and secures the loan with a hypothec registered against the property on the day of the deed. What is particular to Malta is how the loan fits around the promise of sale.
Get approval in principle first
Before signing a konvenju, speak to one or more banks and obtain an approval in principle — an indication of how much they will lend based on your income and commitments. It strengthens your negotiating position and tells you what you can afford.
Make the promise of sale conditional
The single most important protection for a borrower is a clause making the promise of sale conditional on obtaining a bank loan of a stated amount within a stated time. If the bank refuses in good faith, you can withdraw and recover your deposit. Without the clause, the deposit is at risk.
What banks ask for
- Identity and residence documents.
- Proof of income — payslips, employment contract or, for the self-employed, audited accounts and tax returns.
- Source of funds for your deposit and costs — banks apply strict anti-money-laundering checks.
- A valuation of the property by the bank’s architect.
- Insurance — banks usually require life cover assigned to the bank and buildings insurance.
Borrowing as a non-resident
Maltese banks do lend to international buyers, but expect a more detailed review, more documents on foreign income and possibly a lower loan-to-value. Options include:
- a Maltese bank loan, if you will be resident or have Maltese income;
- financing from your home bank against assets there;
- buying outright, which also simplifies residency-programme applications that require evidence of funds.
On completion day
The bank releases the loan to the notary, who pays the seller and registers the hypothec. Your repayments begin according to the loan agreement.
Tax
Budget 2026 confirmed that existing deductions for mortgage interest and property-related expenses remain available, subject to eligibility. If you let the property and use the flat 15% rental tax, no interest deduction applies to that income — see rental income tax.
