Nearly four months after it was abruptly halted, young couples are angry that there is still no indication if or when the home equity scheme will be reintroduced.
A number of couples had applied for the scheme, only to find out that their application could not be processed until further notice.
When contacted, a spokesman for the Social Policy Ministry would only say that the scheme was being restructured and it should be revamped "soon".
He said the process was slowed down because of changes in the Housing Authority board, which was now trying to establish how to make the scheme sustainable.
The scheme was launched last October, and was suspended six months later before it reached the allocated number of 250 applicants. It was aimed at helping first-time buyers.
In cases where the price of a property cannot be met through a bank loan, under the scheme the authority loaned couples the shortfall between the sum that could be borrowed and the purchase price.
To ease the burden, the beneficiaries were not obliged to repay their loan until after 10 years from the date of sale. After this period it would have been assessed whether the applicant was in a position to make the repayment or take an additional loan.
One infuriated applicant who contacted The Sunday Times said he has spent 12 weeks chasing the Housing Authority and the Social Policy Ministry for information about the scheme.
The applicant, who preferred to remain unnamed, claims that Prime Minister Lawrence Gonzi and Social Policy Minister John Dalli had both assured him, in replies to his e-mails, that the scheme would continue practically unchanged. But when he called the Housing Authority last Monday there seemed to be doubts over whether the revamped scheme would ever see the light of day.
Like many, the 28-year-old applicant is unsure whether to extend the promise of sale of the property he wanted to buy. He said he was forced to incur extra expenses due to the sudden suspension of the scheme.
"I cannot afford this house without the scheme, and would have never gone for it had I not been promised that I was eligible for it," he said.
The uncertainty made him incur extra expenses - including notary and architect fees, bank charges, four months of interest on a loan to cover the deposit - in addition to the fee spent on the application for the scheme.
Last May, Mr Dalli had informed the applicant in an e-mail that a new restructured scheme would be available within four weeks. Three months later, many first-time buyers remain in the dark.
"The worst thing is the lack of information because we don't know where we stand, or whether we should extend the contract," the applicant said.
When contacted, a spokesman for the Housing Authority said that the authority had no new information about the scheme, but that it was a very "urgent matter" on its agenda.
However, no timeframe could be given on when the scheme will be reintroduced.
On the Housing Authority website, the equity scheme is the first service to be listed, with a note saying that applications will not be processed until further notice.
cperegin@timesofmalta.com