Property Malta

At Bank of Valletta we know that whether you are a first time buyer or acquiring your second residence, the purchase of a new home requires careful consideration. In order to facilitate this process, we offer a professional management service to assist you in finding the appropriate financial option that best suits your needs and requirements.

Our comprehensive range of home loan options has been developed to suit your individual requirements, such as:

• The purchase of a finished property;
• The purchase of a property in shell form, and relative completion costs;
• The purchase of a plot of land, construction and completion costs;
• Upgrading to your new dream home, or renovating your present property;
• Refinancing of a home loan from another lender. 

Our choice of Home Loans

BOV Home Loan Package for First-Time Buyers

Buying a home for the first time is very exciting, but we understand that it can be stressful too. With this package we will offer you:

• A loan up to €116,470;
• Maximum term of up to 40 years;
• Advantageous interest rates of 1% over the bank's base rate;
• No processing fees will be charged;
• A discount of 50% on the Bank's legal fees;
• Additional loan to purchase furniture and appliances at the same rate of interest.

Bridging Loans

You may wish to buy a new home and require finance while your present home is being sold. Bridging Loans are available to enable the purchase of your new property, pending the sale of your existing property. The bridging loan will then be repaid from the proceeds of your sale.

There are two types of bridging loans:

An open-ended Bridging Loan refers to the situation when no preliminary agreement for the sale of the existing property has been finalised. The Bank usually lends up to a maximum of 65% of the valuation of the property being sold. A maximum term of 18 months is usually given.

A close-ended Bridging Loan is where a preliminary agreement for the sale of the existing property is finalised. In this case, the Bank lends up to 75% of the valuation of the property being sold, and the term extends up to the date of the expiry of the preliminary agreement (a maximum term may apply).

Interest-Only Home Loans

This type of home loan gives you the opportunity to repay the interest only, over a maximum term of 6 years. The capital will be repaid in one lump sum at the end of the term. This loan can be used to purchase and/or complete the main or second property. Interest can be paid monthly or semi-annually in March and September.

Source of repayment must be specified and may include the sale of alternative property, the maturity of an investment, or any other source acceptable to the Bank. If it is indicated that the loan will be repaid from the sale of a property, this property must not be your residence, it must be vacant and must be owned by you at the time of submitting the application. It is important to note that the property being financed cannot be the eventual source of repayment of the loan capital. There is no limit on the amount you can borrow with the BOV Interest-Only Home Loan. You can choose a loan with a variable or fixed interest rate.

To be eligible you need:

• To have a minimum gross annual income of €58,300 or net unencumbered assets of at least €466,000;
• Total monthly repayment should not exceed 25% of your gross income;
• The extendible value of the property which will be sold should reflect 70% of an architect's valuation less any existing bank loans/mortgages.

Buy-to-Let Loans

You may also wish to obtain finance in order to buy and/or complete a residential property for letting purposes.

Through the BOV Buy-to-Let Loan:

• You may borrow up to €580,000;
• The maximum amount of the loan must not exceed the equivalent of 75% of the purchase price or professional valuation of the property, whichever is the lowest;
• The monthly repayments must not exceed 35% of your existing disposable income;
• A portion of the anticipated rental income could also be included;
• Maximum term of loan up to 25 years from first drawdown.

Fixed-Interest Rate Home Loans

This loan offers you the security of knowing that your home loan interest rate will not change during the term of your fixed rate. The Fixed-Interest Rate Home Loan will give you peace of mind by allowing you to plan ahead with certainty of knowing what your interest rate will be during the fixed rate period.

At the end of the fixed rate period your loan will be converted into the variable rate applicable at the time, unless you will opt to take up another fixed interest rate, if applicable.

Your easy guide to BOV Home Loan finance

Our range of home loans is offered on the following basis:

• Up to 90% of the purchase price or completion costs
• Competitive interest rates
• Affordable monthly repayments calculated as a percentage of your gross income;
• A loan amount based on joint incomes;
• Flexible loan repayment terms of up to 40 years;
• The property itself is offered as security;
• Pledge on a life assurance policy for the full value of the loan;
• Pledge on a comprehensive insurance policy to cover the value of the property and provide financial security against damage to the home.

Documents required at enquiry stage

• Your I.D. Card/s;
• Your latest pay slips, FS3 forms and/or tax returns.

Additional documents required at application stage

• Architect’s property report and valuation;
• Architect’s estimate of costs (where applicable);
• Building permits, layout plans and site plans (where applicable);
• Preliminary agreement / deed of acquisition;
• Ground rent receipts (if applicable);
• Records of any investments, life assurance policies and other assets, as well as statements of your bank account, if you bank with other institutions;
• Records of any financial commitments such as personal loans, credit cards, etc.

Affordable Protection

Peace of mind means knowing that your life as well as your property and its contents are all covered against the risk of unexpected events. It is fundamental that when you buy your new home, you have adequate life cover so as to ensure that your home loan is repaid in the unforeseen event of death.

Bank of Valletta offers a range of BOV Lifelink life assurance policies at very competitive and affordable premiums. We also offer the BOV Lifelink Payment Protection Insurance which has been specifically designed to provide an income to maintain your loan repayments in the event of an accident, sickness, unemployment and / or death. With the BOV Lifelink Payment Protection Insurance you can put your mind at rest. Bank of Valletta also offers home owners insurance to cover your property and its contents in case of loss.

Your Next Move . . .

Before taking any decisions it would be beneficial to seek advice and take advantage of our expertise. Even if you are in the initial phase of your search and have not actually viewed any properties, or are still considering home improvements, or simply wish to find out what your loan entitlement is, we can help you reach your decision. Furthermore, we commit ourselves to provide you with a fast and efficient service.

You are therefore invited to visit your nearest BOV branch where our trained staff are available to discuss your borrowing requirements, and provide you with all the information you need regarding home loans, savings schemes and other financial options. You will thus be able to reach the best possible solution before you enter into a commitment.