Home Loan Application in Malta

So far in our quest to buy a property in Malta, we have had the initial meetings with banks to see if we're eligible and get quotes on repayments. We have searched the market, found a property we liked and signed the promise of sale. So now, the property is off the market whilst you apply for a bank loan and the bank, the notary and your architect do their work to ensure this sale can go through.

Even if the bank has kind of 'pre-agreed' they'd give you a loan, this can still be rejected once the full application is submitted. In the initial meeting, they look only at your salary and determine roughly how much they'd be willing to lend and at what interest rate.

During the application process, they look much further into your finances, going through months worth of bank statements, your employment and salary history, savings, other outgoings and probably quite a bit more.

Documents needed to apply for a home loan

This process might vary a little from bank to bank so the following is from my experience. To submit your application for a home loan you will need to provide the bank with:

• past 6 months bank statements for all bank accounts you hold (current accounts, savings accounts, Revolut accounts, foreign accounts)

• past 3 months payslips

• employment contract (signed by you and your employer)

• latest FS3

• ID card

• passport (you will need both)

• the signed promise of sale

• a completed questionnaire that the bank will provide.

Your loan has been approved- now what?

The bank will review all the documents and usually come to a decision within 3-4 weeks of application. They might get in touch during that time to clarify certain points or request more documents before, finally, approving or denying the loan. But this is only half the battle. Now they need to check out the property and see if they are willing to lend against it.

Once that is done, the bank will begin their vetting of the property. They will send out their own architect, value the property, then request a lot of documents regarding the property before they agree to issue the loan on that building. They may request:

• your architect's valuation

• your architect's estimate of works

• copy of MEPAs full development permit

• plan of the property

• land registry site plan and schedule 8

• energy performance certificate (EPC).

I've noticed that no one is particularly helpful during this process. I keep telling everyone involved that this is my first time and I have literally no idea what steps need to come next yet people still expect you to just know stuff, turn up with the right documents, set the right appointments etc. So I'll make sure to document this whole process so you won't have to go through the same stress as I am!

The property buying process so far

1. Initial bank meeting (are you eligible for a loan and on what terms)

2. Find a property, make an offer, have the offer accepted

3. Sign Promise of Sale

4. Officially apply for the bank loan

5. Getting rejected

6. Setting contract date!