A €30million agreement between the government and Bank of Valletta will help facilitate home loans for properties worth up to €120,000.

The agreement was announced at a joint press conference between Social Solidarity Minister Michael Falzon and BOV's top brass.

The first of two schemes being offered will see the bank provide the whole financing, rather than 90 per cent, for those who cannot afford to raise a 10 per cent deposit. The Housing Authority will guarantee the 10 per cent.

The second scheme will see the housing authority subsidise loan repayments on properties worth up to €120,000. The subsidy will be €167 monthly.

When asked why the threshold had been set at €120,000 when property prices were soaring, Dr Falzon said the programme was not for those seeking "luxury property".

A member of his secretariat added that a recent report, commissioned by the Malta Developers Association, had highlighted "thousands" of properties within this price bracket.

"Perhaps you won't find properties at this price in Sliema, but in the south, you certainly will," he said.

The funding follows a similar agreement reached previously with APS for properties worth just €100,000. Some 30 homes were purchased through that funding initiative. 

The income thresholds for the BOV scheme are higher than those previously agreed with APS.

Single persons earning up to €18,000 can benefit. This is €4,600 more than the APS scheme had offered.

The thresholds for single parents has also risen - from €15,600 to €19,000, and for couples from €18,000 to €20,000.