Malta will launch a scheme to help young people struggling to save up for a home loan deposit in a property market which has ballooned in recent years.

The scheme, announced in the 2020 Budget, will see the government grant an interest-free loan of up to €17,500 to people under 40 years old, enough to help them secure a deposit for a property at the lower end of the market.

Loans will be repayable over 15 years and will be subject to rigorous means testing, in collaboration with banks, to ensure they are only granted to people who are able to repay it, therefore avoiding the spark of a sub-prime lending crisis.

Meanwhile, the first-time buyers’ scheme has been expanded, exempting people from paying stamp duty on the first €175,000 of the property price, up from €150,000 to reflect the reality of the property market. 

And the housing benefit scheme for people who pay more than 25% of their income in rent has also been expanded to cover households with a combined annual income of up to €33,000.

What do you make of this scheme?

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