One of the key impacts of the 2008 economic crisis had been a severe slowdown in Malta’s property market. High unemployment and low economic growth meant that young people found it very hard to get on the property ladder. Upon being elected Labour immediately set itself the task of changing this.
It started with the first-time buyer scheme, which resulted in thousands of euro saved from paying a much lower stamp duty. Then Labour started to help those who could take a loan to buy a property but were finding it difficult to save for the deposit required. Labour introduced equity sharing to assist those who were unable to buy completely the property they desired. Finally, in the last budget Government introduced incentives of tens of thousands for those purchasing vacant properties and those in village and town cores and renovating them.
Assistance will now focus on the maintenance of mortgages. The pandemic and the initial impact on employment meant that at one point one-tenth of all households required the help of a moratorium to be able to retain possession of their property. This brought in a greater focus on the importance of mortgages in sustaining homeownership.
Labour’s proposal is that Government pays €1,000 of the mortgage payments made during each year for the first ten years of a loan for all new first-time buyers. This means an improvement of €10,000 in new homeowners’ disposable income.
Labour’s proposal is that Government pays €1,000 of the mortgage payments made during each year for the first ten years of a loan.
For persons on the average wage who borrow €280,000, this scheme means that Government will be paying one month of repayments for the first ten years of the loan.
This means that one-eighth of the burden of servicing the mortgage will now fall upon Government.
For those on a lower income who borrow €150,000, this scheme means that Government will be paying two months of repayments for the first ten years of the loan. This means that one-sixth of the burden of servicing the mortgage will now fall upon Government.
A progressive scheme that assists all first-time buyers but relatively gives more help to those on low incomes. A universal scheme that helps all reach their dream and aspiration of building a new family. Truly the best way for Malta to start building a new prosperity.