Property
Malta — Property: Mortgage Availability
Central Bank of Malta Directive 16 caps loan-to-value at 90% for residential borrowers buying a main home and sets a 40% stressed debt-service limit.
VerifiedGovernment / official sourceCentral Bank of Malta — Directive No. 16 on borrower-based measuresLast reviewed: 2026-10-23
Key facts
- Category I borrowers: loan-to-value at origination capped at 90%, with at most 10% of loan volume above that cap each half year.
- Stressed debt-service-to-income limit of 40% with a 150 basis point interest-rate shock.
- Maximum maturity is 40 years or the official retirement age, whichever comes first.
- Category II borrowers: LTV cap of 75% with a 20% speed limit and the same 40% stressed DSTI limit.
- A consultation opened 23 January 2026 proposing a 1.3x stressed debt service coverage ratio for legal persons; the final outcome was not confirmed.
Steps
- Step 1: Assess your eligibility — Check your credit score and financial situation to determine if you qualify for a mortgage in Malta.
- Step 2: Choose a lender — Research and select a lender that offers mortgages to foreigners in Malta. Some lenders may require a local guarantor or have specific requirements for foreign buyers.
- Step 3: Apply for a mortgage — Submit your application and supporting documents to the chosen lender. This may include proof of income, employment, and credit history.