Malta has announced a new housing initiative called My First Home, which could make it easier for first-time buyers to enter the property market. Under the proposal, the government may provide an interest-free loan covering up to 25% of the property value. The initiative was presented by Prime Minister Robert Abela as part of the Labour Party’s housing programme.

📜 The idea behind the scheme is that the government would cover part of the property price without charging interest. This share would remain secured by the state until the buyer is able to repay it. Once the loan is repaid, the buyer becomes the sole owner of the property.

📊 The proposed conditions are as follows:

— applicants must be first-time buyers aged 23 or older;
— single buyers with an income of up to €40,000 may qualify for properties worth up to €300,000;
— couples with a combined income of up to €60,000 may qualify for properties worth up to €350,000;
— the interest-free loan may cover up to 25% of the property value.

💶 According to the Labour Party’s estimates, the scheme could generate significant savings on mortgage interest. Potential savings are estimated at up to €65,000 for single buyers and around €75,000 for couples. This is especially relevant for Malta’s housing market, where affordability remains one of the key challenges for young buyers.

📈 The context behind the measure is clear. According to Malta’s National Statistics Office, the residential property price index increased by 6.1% year-on-year in the fourth quarter of 2025. This means that even with stable demand, entering the market is becoming more difficult for buyers with limited initial capital.

🏘 If approved, the scheme could support demand in the affordable housing segment. This primarily concerns properties priced up to €300,000–350,000, including apartments and smaller homes suitable for first-time buyers. In this price range, government support could have the strongest impact on purchasing decisions.

📌 For the real estate market, this may lead to several effects:

— increased activity among first-time buyers;
— stronger demand for properties within the established price limits;
— higher competition for quality apartments in the affordable segment;
— additional price support in areas with limited supply.

⚖️ It is important to note that this is currently a proposal, not an enacted law. The final terms may be clarified after political approval. However, the announcement itself shows that Malta continues to look for ways to support buyers amid rising prices and high mortgage financing costs.

🔎 You can explore available properties in Malta for living or investment on our website.