MDA: Government’s proposed 25% interest-free loan ‘addresses affordability in the right way’

The Malta Development Association has welcomed the Government’s proposed ‘My First Home’ scheme, describing it as a timely measure that directly addresses housing affordability for first-time buyers.

The proposal, announced by Prime Minister Robert Abela on Tuesday morning (today), would grant first-time buyers an interest-free loan of up to 25 per cent of a property’s value.

The scheme targets individuals over the age of 23, with eligibility capped at properties valued up to €300,000 for single buyers earning under €40,000, and up to €350,000 for couples earning up to €60,000. Beneficiaries would be able to repay the loan over time until the age of 65, potentially saving tens of thousands of euros in interest.

The association said the initiative supports a key national priority of helping young Maltese and Gozitan individuals access homeownership.

In its reaction, the MDA tells BusinessNow.mt that the proposal “directly addresses affordability in the right way” and reinforces the importance of property ownership as a long-term goal. It emphasised that owning a home remains a cornerstone of personal stability, family security and wealth creation.

The association also rejected concerns that such measures could distort the property market. Instead, it argued that initiatives like ‘My First Home’ contribute to stability and accessibility, particularly in a sector where many families, businesses and workers have long-term investments.

According to the MDA, the proposal reflects continued confidence in Malta’s property market and signals underlying economic strength.