GozoNews.Com

The Housing Authority is launching another scheme intended to help first time buyers. Applicants purchasing property from the private sector can now also benefit from a subsidy given on the interest rates on loans for the purchase of their first residence.

By means of its current Shared Ownership initiative, the Authority said it assists those on a low income to purchase the share of the property that they can afford. 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 (EUR 23,293.73) for the purchase of a first residence in shell form and up to Lm 14,000 (EUR 32,611.23) for the purchase of a first ‘finished’ residence.

The authority said it is now assisting first time buyers by giving subsidized interest rates on home loans. Just as the Equity Sharing proved to be a huge success we have no doubt that the public will respond positively to this new initiative.

This scheme is open to those applicants who have signed, or will be signing the deed of purchase after the 16th of October. Under this scheme interest subsidy will be given during the first 10 years of the loan repayment. Subsidy will be given up to a maximum of one per cent over the base rate as established by the Central Bank of Malta, if this rate is over 3.75 per cent. Assistance will be given to applicants purchasing property whose value does not exceed Lm50,000 (EUR 116,468) when finished. The amount of the loan on which interest will be subsidised will not exceed the amount of Lm40,000 (Eur93,175).

This scheme is not 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 qualify if over 18 years of age. This scheme is also open to single persons of 28 years of age or over.

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.