The Housing Authority on Monday (today) announced that it would be increasing the maximum deposit for first-time buyers it currently covers through its Deposit Payment Scheme to €22,500.
The limit was previously set at €17,500, allowing buyers to purchase a property of up to €175,000. The latest amendment increases the value of property covered by the scheme to €225,000.
Speaking at the launch, Minister for Social and Affordable Accommodation Roderick Galdes said that the most impactful interventions are those based on a rigorous assessment of what people are going through.
“We saw young people going to buy their first house and find that, although they have enough income to qualify for a loan, they lacked the savings to put down the required 10 per cent deposit,” he said.
“In 2021, we launched the Deposit Payment Scheme to address these people’s needs, and over 200 families have been helped to buy their own home through this initiative since its launch.”
The Minister said the Housing Authority continued to closely watch the property market, and is now amending the scheme in line with the latest developments, by increasing the amount covered by the Government to €22,500.
The Deposit Payment Scheme, aimed towards individuals aged 40 or less, sees the Housing Authority acting as a guarantor in a personal loan for this amount, thereby enabling beneficiaries to purchase properties worth up to €225,000.
Interest on this personal loan is paid by the Housing Authority.
Speaking after Minister Galdes, Housing Authority CEO Matthew Zerafa said he believes that through this amendment more families will become homeowners.
“The scheme is meant to help those who need early liquidity to make the deposit,” he said, adding that applicants include many who specialised in particular skills through extended studies that left them with a good income but little by way of savings.
“These same applicants could be granted a loan of higher value, for a better property, but the Housing Authority’s assistance only helped up to a certain point,” noted Mr Zerafa.
“With these amendments, these families can also enter the market.”
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