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Six Things To Keep In Mind Before Getting A Home Loan In Malta

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There’s a lot that goes into making a house a home, from the decor to the location, and even how you finance it. 

Whether you’re a first or second home buyer (or current homeowner), there’s always a few things that you should keep in mind when looking at financing options and payment plans, especially in Malta.

A home loan is almost always inevitable but how you go about getting one is totally in your hands to dictate. In order to avoid all the classic pitfalls you can find yourself in, study the next six steps we’ve laid out for you for when you plan to get a home loan.

1. Save up for a deposit

First and foremost, buying a home is expensive and you will need to budget, budget and budget. Before you can even consider getting a home loan, you need to have saved enough money for a deposit on that dream house of yours. Once you’ve done that, then you can start looking at your home loan options and which banks and providers are best suited for you. 

To help you figure this out, MeDirect have created a nifty calculator where you would be able to get an idea of what you would be able to borrow and what your repayments might look like.

2. Set your targets beforehand

Whether you’re looking to buy a new property or refinance your existing home loan, you need to make sure that you have your targets and goals fully mapped out. You need to consider a number of things including the duration of the loan, what interest rates you’re getting and whether the loan you’re looking at is the right one for you.

At the end of the day, taking out a home loan is a pretty big deal and it’s important that you take one with a clear, long-term plan in mind.

3. Speak to any expert you might know

If you’re like most people, you’re not an expert on property and home loans. Thankfully, that doesn’t matter, because there are experts in the field who can help guide you on what you should be looking for and where you should be looking.

And we’re not just talking about real estate agents…

Architects, developers, lawyers and home loan advisors all have expertise in the field and can help you immensely with your options.

4. Make sure you understand the terminology

There’s a lot of jargon that gets thrown around when it comes to getting a home loan that can confuse you – from collateral to credit appraisal and disbursement to hypotech. Unfortunately, these are all terms that you just have to get used to, so you better start learning them.

Doing so will help you navigate through the field a lot better and help you distinguish between the good and the bad so that you can make the right decision.

5. Check out what government schemes are available

Thankfully, the Maltese government has a number of schemes to help property buyers who might be struggling to get what they need. If you search online, you’re bound to find a scheme that you can take advantage of and you don’t have to be a first-time buyer either. 

More importantly is that you keep checking to see if new schemes are being launched, especially in light of these turbulent times.

6. Find the right bank for you

At the end of the day, it all comes down to this – finding the right bank for you – and that might very well be MeDirect.

MeDirect is a digital bank that makes getting a home loan super easy by trimming that fat that comes with the process and offering you a personalised service that gets you what you need. 

Being Malta’s first digital bank, MeDirect Bank enables you to submit all home loan documentation online, eliminating the need for you to physically visit banks and therefore allows you to work at your own pace and convenience.

More importantly, MeDirect is committed to providing a tailored service and in doing so offers financing options for both primary and secondary residential properties, at very competitive rates. To this end, MeDirect doesn’t charge any loan processing, booking, commitment or legal fees you’d usually find when taking out a home loan. What’s even better is that MeDirect also makes it more affordable for you by partially refunding notarial and architect fees.

But let’s step back for a second. What if you already have a home loan? And what if you’re unhappy with it? 

Well, don’t worry because there are options for you too.

Whether your house is worth more now or your interest rate might be rising soon, MeDirect is here to help you refinance so that you get the right deal for you. The digital bank has qualified advisors set up to ease out the process and they’re just a phone call away if you’re ever feeling overwhelmed or confused. 

There’s a lot that you need to consider when choosing your home loan, but if you take into consideration the points above, you should be on track to finding the right deal for you.

Obviously, the shortcut to all of this is to go straight to MeDirect and let their advisors help you on the journey to your dream home. 

MeDirect Bank (Malta) plc, company registration number C34125, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370). MeDirect Bank (Malta) plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.

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When JP's not too busy working on polyrhythmic beats, you'll probably find him out and about walking his dog.

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