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Having gained a reputation as one of Malta’s leading banks, Bank of Valletta have launched a home loan scheme specifically targeted at First Time Buyers. The scheme was created to allow their clients to benefit from greater savings when coupled with the Budgetary concession on stamp duty. The concession states that those buying their first home in Malta, and signing the final contract within 2014, are exempt from paying stamp duty on the first €150,000. Normally, this stamp duty is set at 3.5%, thus amounting to €5,250 in stamp duty if the buyer spends up to €150, 000. By being exempt from this payment, First Time Buyers may benefit from savings of up to €8000 when coupled with BOV’s latest home loan offer.

The scheme entitles First Time Buyers to an interest rate of 1.99% on the first 12 months, and a variable interest rate of 3.1% for the remaining term. This preferential rate is applicable only on home loan of no more than €150,000. In other words, those making a purchase of €165,000 and having 90% financed by the bank, may benefit from this scheme (those unable to make the 10% deposit may have a look at their Home Assist Loan).

Those applying for the First Time Buyers Home Loan package also benefit from the following:

• No booking fee;
• A full refund of processing fees, amounting to €450;
• Flat legal fee of €150;
• A refund of up to €150 on the first year’s premium of your MSV Life Policy.

Bank Financing initial deposit with a Guarantor

As mentioned above, there may be cases whereby a First Time Buyer is unable to personally pay the 10% (either in full or inpart) deposit to the vendor. Should this be the case, one may have a third party (such as a family member, close relative, or friend) offer a guarantee to the bank to make up for the short fall in contribution. Bank of Valletta are also able to exclusively offer a deposit account (covering seven years) with a preferential interest rate and annual interest paid to your third party, aside from accepting any other form of cash or quasi security. Your guarantor will also benefit from:

• No first year fee on their 24/7 internet banking service;
• No first year fee on any classic credit card;
• Exempt from processing fees on any new loan (either personal or home) sanctioned to them;

As with all loans, the above are subject to the bank’s usual lending criteria (the bank loan will not go beyond retirement age, or will not exceed 40 years (whichever is lower)), and approval from your BOV branch. Both offers are valid until 30th June 2014, but may be closed earlier at the banks discretion.

It is recommended that you contact a local real estate agent or visit your nearest BOV branch for clarification.