The Housing Authority is launching another scheme to further assist first-time buyers. Applicants purchasing property from the private sector can now benefit from a subsidy on interest rates on loans for the purchase of their first residence.

Commenting on the new initiative undertaken by the Housing Authority, Marisa Micallef said: "The Housing Authority is aware that a number of people want to become home owners. This is why the authority has three initiatives to assist applicants in this area."

By means of its Shared Ownership initiative the authority assists those on a low income to purchase the share of the property that they can afford. Earlier this year the authority launched the Equity Sharing Initiative to assist first-time buyers who cannot borrow enough to meet the cost of property in the private sector.

Under this initiative, the authority finances up to Lm10,000 (€23,293.73) for the purchase of a first residence in shell form and up to Lm14,000 (€ 32,611.23) for the purchase of a first 'finished' residence.

"The Authority is now assisting first-time buyers by giving subsidy on interest rates on home loans. Just as equity sharing proved to be a huge success we have no doubt that the public will respond positively to this new initiative."

This scheme is open for those applicants who have signed or will be signing the deed of purchase (October 16, 2007). Under this scheme, interest subsidy will be given during the first 10 years of the loan repayment. Subsidy will be given up to a maximum of one per cent over the base rate, as established by the Central Bank of Malta if this rate is over 3.75 per cent.

Assistance will be given to applicants purchasing property which value does not exceed Lm50,000 (€116,468) when finished. The amount of loan on which a subsidy on interest will be given will not exceed the amount of Lm40,000 (€ 93,175).

This scheme is not means tested. Applicants who qualify for assistance include families with children and engaged couples who are over 21. Disabled applicants and single people who have spent a period of time in a residential facility and who have left to live independently should be aged over 18. This scheme is also open for single people aged 28.

Application forms may be obtained from the offices of the Housing Authority at 22 Pietro Floriani Street, Floriana, and from the Housing Authority branch at 25 Enrico Mizzi Street, Victoria, Gozo.