Housing Authority launches interest subsidy scheme

The Housing Authority has launched an interest subsidy scheme for first time buyers.

Housing Authority chairman Marisa Micallef said the authority already assists potential home owners through the Shared Ownership initiative for those with a low income.  Earlier this year the authority launched the Equity Sharing Initiative to assist first time buyers who cannot borrow enough to meet the cost of property in the private sector. Under this initiative the authority finances up to Lm 10,000 (€ 23,293.73) for the purchase of a first residence in shell form and up to Lm 14,000 (€ 32,611.23) for the purchase of a first ‘finished’ residence. 

The authority is now assisting first time buyers by giving a subsidy on interest rates on home loans.   The new scheme is open for those applicants who signed or will be signing the deed of purchase after  October 16, 2007.  Under this scheme the interest subsidy will be given during the first 10 years of the loan repayment.  It will be given up to a maximum of 1% over the base rate as established by the Central Bank of Malta if this rate is over 3.75%.  Assistance will be given to applicants purchasing property whose value does not exceed Lm 50,000 (€ 116,468) when finished.  The amount of loan on which a subsidy on interest will be given will not exceed the amount of Lm 40,000 (€ 93,175).  Applicants will not be means tested.

Applicants who qualify for assistance include families with children and engaged couples who are over 21 years old.  Disabled applicants and single persons who have spent a period of time in a residential facility and who have left to live independently should be over 18 years of age.  This scheme is also open for single persons who should be 28 years old.

Application forms may be obtained from the offices of the Housing Authority at 22, Pietro Floriani Street Floriana and from the Housing Authority Branch, 25, Enrico Mizzi Street, Gozo during normal office hours.

Source - Times of Malta