Home Loans for Non Residents

If you are thinking of buying a property in Malta and need finance we can help. Our specialised staff will offer expert assistance and guide you all the way to obtaining your dream home in Malta.

We have trained specialists who can help you through the process of taking out a home loan. Even if you are just thinking of buying an overseas residence you will find it well worth getting in touch as soon as you can. Quite simply, the earlier you talk to us the more helpful we can be.

We will help you to work out the amount you can borrow and give you a good idea of what your monthly repayments, fees and deposit will be. The advice you receive will be based on a detailed understanding of your individual needs and circumstances.

If you would like to make an enquiry about your home loan options contact us by e-mail.

Do you want to know how much you may borrow? By clicking on the link below you may access the online affordability calculator screen.

 Access the Affordability Calculator

A home loan decision in 48 hours!

We guarantee a decision by the next working day subject to you submitting all the documentation required. This is our promise. At HSBC we pride ourselves with the speed and quality of service and we pledge to pay €120 if we don't get back to you within 48 hours.

Latest offers

Click here for more information on our latest offers.

Understanding Malta

The purchase of property in Malta by non-residents is regulated by legislation. Non-residents are non-EU nationals or EU nationals who have not resided in Malta for a continuous period of five years. However persons falling in the latter category, and who intend to purchase property in Malta to be used as their primary residence, are exempted from any restrictions.

Non-residents are allowed to own only one residential property in Malta.

In order to be able to purchase property in Malta, non-residents need to apply for an Acquisition of Immovable Property (AIP) permit from the Ministry of Finance.

There is no upper limit on the value you can spend to acquire your property in Malta, however there are some restrictions on minimum values. These values are adjusted in line with the immovable property price index.

If you decide to purchase property in Malta primarily as an investment, which you intend to rent out, we could offer you other products whereby we can also help you in financing this expenditure.

Purchase of property situated in "Special Designated Areas" is exempt from any of the above restrictions. Customers may therefore own more than one property in these areas and purchase would not be subject to issue of the AIP permit.

Other conditions may apply.

Interest Rates

Home Loans up to €125,000

1.125% over Home Loans Base Rate*; i.e. an effective rate of 4.875% per annum.**

Home Loans above €125,000 :

1.375% over Home Loans Base Rate*, i.e. an effective rate of 5.125% per annum.**

* As at 13 October 2008, the Home Loans Base Rate was 3.75%
** Offers may apply from time to time

Home Loans designated in major foreign currencies

2.0% over the respective 6 months LIBOR. Interest rate will be automatically adjusted at the end of each 6 monthly period.

Typical APR for a Home Loan of €72,000 repayable over 30 years - 5.1% p.a.

Typical APR for a Home Loan of €144,000 repayable over 30 years - 5.4% p.a.

In order to obtain the APR for a Home Loan of up to €186,349.87 at a specific term of repayment or in a foreign currency, please call Customer Service on 2380 2380 or call at any of our branches.

Please note that APR quotation has been computed in euro.

Fixed Interest Rate Home Loans are available from any HSBC Bank Malta plc branch or on Customer Service 2380 2380.

When taking out a Home Loan it is important to give some consideration to the effect that interest rate changes will have on your budget.

With a Fixed Interest Rate Home Loan the interest rate will remain the same during the fixed rate period.

Fixed Interest Rate Home Loans are usually available as an offer and for a fixed term.

We will issue such offers from time to time, with each offer having different rates of interest and duration.

At the end of the fixed rate period your loan will be converted to a variable interest rate, unless you decide to opt for a new fixed rate if available.

Features

• Enables you to fix your interest rate for a period of time during which the repayments remain constant.
• At the end of the fixed rate period you will usually be offered a further fixed term. If not, your Home Loan will switch to our variable rate.
• A six-month drawdown period is allowed with the possibility of extending this period by a further three months at a fee.

Product Terms and Conditions:

• Once your application has been agreed, you will be charged a booking fee.
• Overpayments can be made without a charge, as long as the additional payment does not exceed 20% of the regular monthly repayment.
• If you repay the loan before the fixed rate period has ended, you will be charged an early repayment fee.
  
  All existing and new Home Loans are eligible to opt for a Fixed Interest Rate Home Loan. Some restrictions may apply.

Early repayment fees

We will always let you over-pay your monthly repayment on your variable interest rate Home Loan, free of charge. Overpayments on a fixed interest rate Home Loan can also be made without a charge as long as the additional payment does not exceed 20% of the regular monthly repayment.

How much will we lend you?

The home loan we recommend will depend on:

• Your individual circumstances
• The value of the property you want to buy
• Your income

Value of property

In general you can borrow up to the following percentage of the valuation of purchase price or cost of construction, whichever is the lower.

• 90% on the lower of estimate of value, purchase price or cost of construction for properties up to €600,000
• 80% on the lower of estimate of value, purchase price or cost of construction for properties above €600,000

However, your personal circumstances can change at any time, and you should consider the implications of any such change when deciding how much you borrow.

Loan may be repaid over a maximum of 30 years provided applicant's age does not exceed 65 years upon last repayment.

Income

We consider your income as the most important factor in determining the amount we can lend. As a maximum, the repayments on your home loan should not exceed 30% of your gross income. We may request you to provide us with an income certificate prepared by a qualified accountant.

If you are applying for finance in your sole name you can borrow up to four times your gross annual income, subject that this does not exceed the '' loan to value ratios '' indicated above.

In the case of a joint application for a Home Loan, you can borrow up to 4 times the higher income plus the partner's income, or 3.5 times your combined gross incomes.

To find out what amount you can borrow simply contact us via e-mail  or visit any one of our branches, sit down with us and discuss your requirements. We can then provide you with a quotation. This tells you exactly how much you can borrow and what your monthly repayments will be.

Buildings insurance

Your residence will probably be your greatest asset. So it's important to keep it secure. As a condition of the loan you must take out adequate buildings insurance. This should cover the cost of rebuilding your residence and we recommend that you review the level of cover from time to time to protect your investment.

Property valuation

We need to know that the property you intend to buy represents adequate security for the loan. This will only be possible by a visual inspection of the property. You have to appoint an architect to carry out an inspection.

Life Assurance

It is essential that you have adequate life assurance to ensure that your home loan is repaid in the event of death. If you wish we can provide a life policy to suit your needs.

HSBC Bank Malta p.l.c. is a sub-agent of HSBC Life Assurance (Malta) Ltd., which is authorised under the Insurance Business Act 1998 to carry on long term business of Insurance.

Your next step

Assuming that everything has gone smoothly up to this point and you have found a property to your liking, it is now time to arrange with a notary for a preliminary agreement to be drawn up. At this stage you will have to pay an agreed percentage of the purchase price, normally this is up to 10%.

At this stage we recommend that you go to your branch to complete the loan application and other formalities, if you have not already done so. Alternatively you may contact us on our email address. In this way you can receive the formal letter of loan approval at the earliest. As soon as you receive it, please give it to your notary to make the necessary arrangements for the publication of deed including applying for the AIP permit.

Documentation required

For a loan enquiry:

• Recent payslip
• Purchase price and / or estimate of cost

For a loan application:

• Recent evidence of income / certificate from a reputable qualified accountant / firm of accountants
• Character reference, unless applicant is already a borrowing customer of the Bank and / or a holder of a current account
• Photocopy of means of identification (passport or identity card)
• Preliminary agreement
• AIP permit
• Architect's estimate of value of works on bank's form
• Other documentation advised by the Bank

Get a quote now!

• What are my home loan options?
  
• How much can I borrow?
  
• What interest rates will apply to my home loan?
  
• How much will my repayments be?

You may access our Home Loan Calculator which will provide you with information such as the loan amount you may apply for, the interest rate, APR and monthly repayment. All this based on simple information you will be requested to provide.

Through this screen you also have to option to contact HSBC Home Loans via email.

 Click here to access the Home Loan Calculator webpage.

You may also contact us via email, call Customer Service on 2380 2380 or visit any HSBC branch for more details.