Malta has proposed a new housing scheme called “My First Home”, which could make it significantly easier to purchase a first property. Under the initiative, the government may provide first-time buyers with an interest-free loan of up to 25% of the property value. In practical terms, this would reduce the mortgage burden and help buyers overcome the first financial barrier when entering the real estate market.

📜 Under the preliminary terms, the scheme will be aimed at first-time buyers aged 23 and over. The government may cover up to a quarter of the property value without charging interest, while retaining that share as security until the loan is repaid. According to Times of Malta, the loan could be repaid later, up until the buyer reaches the age of 65.

📊 The main limits of the scheme are as follows:

— single buyers with an income of up to €40,000 may qualify for a property worth up to €300,000;
— couples with a combined income of up to €60,000 may qualify for a property worth up to €350,000;
— the interest-free loan may cover up to 25% of the property value;
— according to statements from the Labour Party, interest savings could reach up to €65,000 for single buyers and around €75,000 for couples.

💶 For Malta’s real estate market, this is an important step, as housing affordability for young buyers is becoming a growing issue amid rising prices. According to Malta’s National Statistics Office, in the fourth quarter of 2025 the residential property price index increased by 6.1% year-on-year. Apartment prices rose by 6.2%, while maisonettes increased by 5.3%.

📈 If the scheme is implemented, it could lead to several effects:

— higher demand for properties within the established price limits;
— increased competition for apartments and houses priced up to €350,000;
— stronger interest in areas where housing can still be found within these budgets;
— support for developers and sellers working in the first-time buyer segment.

⚖️ It is important to note that the programme remains a political proposal for now. Final conditions may change once the scheme goes through the legislative process.

🔎 You can explore properties in Malta for different budgets and goals on our website.