Christian Peregin
New housing scheme offers repayment aid to first-time buyers
First-time home buyers will have up to 30 per cent of their monthly house loan repayments covered by the government for the first 10 years if they qualify under a new scheme launched yesterday.
The new Housing Authority scheme replaces the Equity Sharing system that was scrapped abruptly last year after it was oversubscribed. Under the old scheme, buyers were given a lump sum, which they had to pay back after 10 years.
This time, the buyers will not have to repay the financial help received, making it much more costly for the government but also more attractive to those needing assistance.
Still, this is being proposed as a more sustainable option as it staggers the amount the government is shelling out and ensures that applicants do not spend more than they can afford.
Social Policy Minister John Dalli said during the launch that the old scheme encouraged first-time buyers to buy more pricey property, resulting in a situation whereby they might not have been able to afford to pay back the government.
Under the new scheme, applicants will buy a property they can afford and the Housing Authority will be making it easier for them by assisting them in the first 10 years of repayments.The old scheme had affected the government's cash flow by about €6.6 million, even though with the new one the authority will have to fork out an estimated €2.5 million that will not be returned.
The ministry said applicants will be separated into three different categories, which will help define what sort of properties should be bought.
Therefore, a single person can buy a property worth up to €70,000 and the government will pay 30 per cent of the monthly repayments. A married couple with two or more children can buy a property of up to €120,000 and the government will pay 18 per cent of the monthly repayments (see tables below for more details).
The scheme will be available for married couples, couples intending to get married, single parents, persons with a disability, separated persons, single persons and those who have lived in institutional or foster homes.
The old scheme had a quota of 250 applicants and the scheme launched yesterday will be open to about 300 on a first-come first-served basis. After that, the Housing Authority will review its options and see how to continue the scheme.
Applications will be available by the beginning of December and those who apply will have to satisfy the necessary criteria that will include a means test and an analysis of the applicant's status, income and assets.
More details on who will be eligible will be announced when the scheme is launched.
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J Martinelli
Oct 31st 2008, 17:37
Oh darn, John Dalli, why do you have to be so mean?
Why not build a villa with enough bedrooms (plus one for a future child) to make sure the first time buyers will be happy? The extra bedroom will be an incentive to increase the birth rate which according to some is decreasing.
Please make sure that each bedroom door bears the name of the ccupant so that there will be no confusion. The extra bedroom could have a 'vacant' label to constantly remind the parents that they ought to do something about it!
Give them an inch and they want a mile. Sometimes it is wiser not to offer anything at all since if one tries to multiply nothing by a million one still gets nothing.
M Agius
Oct 31st 2008, 15:36
And what about families with three or more children of the same sex? They do happen, you know. As if three children are going to sleep permanently in one room, whatever their sex! Children grow into teenagers, and need their space and storage for their clothes and things. This is blatant discrimination.
David Seychell
Oct 31st 2008, 14:58
@Etienne Mallia
"Could anyone explain why people are being discriminated between those who have two children of the same sex with those with different sex?"
I guess it is because in case they are of the same sex they will share their bedroom and in case of different sex they will need two separate bedrooms.
Etienne Mallia
Oct 31st 2008, 13:07
Could anyone explain why people are being discriminated between those who have two children of the same sex with those with different sex?
also, could the ministry have the details online to see the eligibility since salaries have nothing to do with lifestyle since many people have liabilities like loans for weddings, cars etc, bringing their cash float at par with people of lesser incomes?
Charles Muscat
Oct 31st 2008, 11:14
What does it take to separate from your wife in Malta so you can have 30% grand. Can anyone tell me what is the difference from a unmarried couple and a separated couple? I tell you, both are living in sin. So good bye church hello solicitors.
Dominic Newland
Oct 31st 2008, 11:13
Free money for 10 years! Only 300 places on a first-come first-served basis? In case you didn't get the message... QUICK. Get down to an estate agent and buy something.