Authored by the expert who managed and guided the team behind the Malta Property Pack
Everything you need to know before buying real estate is included in our Malta Property Pack
Yes, foreigners can get a mortgage in Malta in 2026, but approval depends heavily on your residency status, income stability, and the size of your down payment.
Maltese banks follow strict rules set by the Central Bank of Malta, including a stressed affordability test that applies to both residents and non-residents.
We constantly update this blog post to reflect the latest regulations, interest rates, and bank policies.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malta.
Can foreigners get a mortgage in Malta right now?
Can a foreigner get a residential mortgage in Malta right now?
Yes, foreigners can get a residential mortgage in Malta in early 2026, though the process is smoother when you have stable income, clean bank statements, and a solid down payment.
EU citizens living in Malta or those with a Maltese work contract tend to have the easiest access to mortgage approval in Malta because their income is simple for banks to verify.
The most common restriction Maltese banks impose on foreign applicants is a lower maximum loan-to-value ratio, meaning you will typically need a larger deposit (often 20% to 30%) compared to Maltese residents.
By the way, we have a whole document dedicated to mortgages for foreigners in our property pack about Malta.
Can I get a mortgage in Malta without residency?
Yes, non-residents can get a mortgage in Malta, but it is harder because banks apply extra scrutiny to verify your income and may require a larger deposit.
Maltese banks typically work with permanent residents, temporary residents, work visa holders, and even non-residents, though each category faces different documentation requirements.
If you do not have permanent residency in Malta, banks most commonly require a higher down payment (usually 25% to 30%), more detailed income documentation, and sometimes proof of assets or savings buffers.
By the way, we've written a blog article detailing residency and citizenship options that exist when you buy property in Malta.
Do banks require a local work contract in Malta right now?
A local work contract in Malta is not always required for mortgage approval, but having one makes the process significantly faster and easier because banks can quickly verify your income.
If you do not have a Maltese work contract, banks in Malta typically accept alternatives such as audited business accounts, foreign employment contracts with translated pay slips, or consistent rental income supported by documentation.
When a local work contract is present, most Maltese banks prefer to see at least 6 to 12 months of employment history with the same employer, though some may accept less if your overall financial profile is strong.
Can self-employed foreigners qualify for a mortgage in Malta?
Yes, self-employed foreigners can qualify for a mortgage in Malta, but the documentation requirements are stricter because banks need to verify that your income is stable and sustainable.
Most Maltese banks require self-employed applicants to show at least 2 to 3 years of business history, supported by audited financial statements, tax filings, and business bank statements that demonstrate consistent earnings.
Is foreign income accepted for mortgages in Malta right now?
Yes, Maltese banks often accept foreign income for mortgage applications in Malta, especially when that income is paid regularly, well-documented, and ideally in euros or a currency the bank is comfortable with.
When you earn income abroad, banks in Malta typically require additional documentation including translated employment contracts, 6 to 12 months of bank statements showing salary deposits, tax returns from your country of employment, and sometimes a letter from your employer confirming your position and salary.
Can I buy a primary home (and an investment property?) with a mortgage in Malta as a foreigner?
Yes, foreigners can get a mortgage for a primary home in Malta in 2026, and this is typically the easiest type of purchase to finance because banks classify it as a Category I loan with more favorable terms.
Getting a mortgage for an investment property in Malta as a foreigner is also possible, but you will face stricter conditions: banks usually classify this as a Category II loan, which means a lower maximum loan-to-value ratio (typically 75% instead of 90%) and sometimes higher income requirements.
If you're buying for investment, you might want to check our blog article about buying and renting out in Malta.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malta versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the eligibility rules banks actually use in Malta?
What minimum monthly income do I need in Malta as of 2026?
As of early 2026, there is no single published minimum income for mortgage approval in Malta because it depends on your loan amount, down payment, interest rate, and existing debts, but a rough estimate is that you need about 3,500 euros per month gross income (around 3,800 USD) to borrow 240,000 euros over 25 years.
In practice, most approved borrowers in Malta fall into an income range of 2,500 to 5,000 euros per month gross (roughly 2,700 to 5,400 USD), though higher incomes are needed for larger loans or if you have other debt commitments.
The minimum income requirement in Malta scales directly with your loan amount and property price: if you want to borrow more, you need to earn more, because the bank must ensure your stressed debt payments stay below 40% of your gross income.
Yes, Maltese banks allow combining household incomes from multiple applicants (such as a spouse or partner) to meet the minimum income threshold, which can make higher-priced properties more accessible.
What debt-to-income limit do banks use in Malta right now?
In Malta, banks use a stressed debt-service-to-income (DSTI) limit of 40%, which means your total monthly debt payments (including the new mortgage) cannot exceed 40% of your gross monthly income after the bank adds 1.5 percentage points to your interest rate as a stress test.
When calculating this ratio, Maltese banks include all your existing debts such as car loans, credit card minimum payments, student loans, personal loans, and any other mortgages you may have, not just the new mortgage payment.
Do I need a local credit score in Malta right now?
No, Malta does not have a centralized consumer credit scoring system like some other countries, so banks in Malta instead focus on your bank statements, income stability, existing debts, and overall financial behavior to assess your creditworthiness.
Foreign credit reports can help support your application in Malta as additional evidence of good financial behavior, but they will not replace the local verification that banks perform by reviewing your income documents, savings, and account conduct.
Do banks require a local guarantor in Malta right now?
No, Maltese banks do not require a local guarantor as a standard rule for foreign mortgage applicants, though it can sometimes be requested in specific situations where the bank sees a weakness in your application.
Banks in Malta are most likely to request a guarantor when the applicant is non-resident with hard-to-verify foreign income, is seeking a high loan-to-value ratio, has borderline affordability, or has limited banking history in Malta.
If a guarantor is required, they typically need to be a Maltese resident or EU citizen with stable income and good financial standing, and they must be willing to take on legal responsibility for the loan if you default.
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How much cash do I need upfront in Malta as of 2026?
What's the minimum down payment in Malta right now?
The minimum down payment for foreign buyers in Malta is typically 20% to 30% of the property price, though the Central Bank of Malta sets the absolute maximum loan-to-value at 90% for primary residence buyers (Category I) and 75% for investment properties (Category II).
Across different banks and buyer profiles in Malta, down payment requirements realistically range from 10% for Malta-resident first-time buyers with strong files to 30% or more for non-residents or those with foreign income.
You may be able to secure a lower down payment requirement in Malta if you are a Malta resident with a local work contract, have a strong income and clean banking history, are buying a primary residence (Category I), and have no existing mortgage debt.
What loan terms can I realistically get in Malta as of 2026?
What mortgage interest rates are typical in Malta as of 2026?
As of early 2026, typical mortgage interest rates for foreigners in Malta range from about 3.5% to 4.5% for variable-rate loans, with the APRC (total cost including fees) usually running slightly higher at around 4% to 5%.
The factors that most significantly influence your interest rate in Malta include your loan-to-value ratio (lower deposit means higher rate), your income stability and documentation quality, whether you are a resident or non-resident, and the type of property you are buying.
Foreigners in Malta sometimes receive slightly higher interest rates than local residents, typically by 0.25% to 0.5% more, because banks perceive higher risk in cross-border income verification and potential currency or employment instability.
The interest rate is one of the factors we look at when assessing whether now is a good time to buy a property in Malta.
Are fixed-rate mortgages available in Malta right now?
Yes, fixed-rate mortgages are available to foreigners in Malta in 2026, though variable-rate loans are more common and fixed-rate options depend on the bank and fixation period you choose.
Maltese banks typically offer fixed-rate periods of 5 to 10 years, after which the loan usually converts to a variable rate, and some banks like Lombard Bank Malta explicitly advertise fixed-rate packages for home loans.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malta. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
How do I maximize approval chances in Malta right now?
What financial profile gets "yes" fastest in Malta right now?
The ideal financial profile for fast mortgage approval in Malta is someone buying a primary residence (Category I borrower) with a deposit of at least 20%, stable employment income, minimal existing debt, and clean bank statements for the past 6 to 12 months.
Banks in Malta consider an income of at least 3,000 to 4,000 euros per month gross (about 3,200 to 4,300 USD) ideal for typical loan amounts, with a stressed debt-to-income ratio comfortably below the 40% limit after all debts are counted.
Maltese banks most favor applicants with permanent salaried employment in Malta (or a stable EU salary) and at least 12 months of employment history with the same employer, as this makes income verification straightforward.
A down payment of 25% to 30% or more typically signals a strong applicant profile in Malta and can offset concerns about foreign income, non-residency, or a shorter employment history.
We give more detailed tips in our pack covering the property buying process in Malta.
What mistakes make foreigners get rejected in Malta right now?
The most common mistake that leads to mortgage rejection for foreigners in Malta is trying to combine a high loan-to-value ratio with unverifiable foreign income, because banks cannot offset income uncertainty without a larger cash buffer from you.
The financial red flag that most often disqualifies foreign applicants in Malta is failing the stressed affordability test, which happens when your total monthly debt payments (including the new mortgage at a rate 1.5% higher than quoted) exceed 40% of your gross income.
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Which banks say yes to foreigners in Malta right now?
Which banks are most foreigner-friendly in Malta as of 2026?
As of early 2026, the banks considered most foreigner-friendly for mortgages in Malta include HSBC Malta, Bank of Valletta (BOV), APS Bank, Lombard Bank Malta, and MeDirect Malta, all of which have dedicated home loan operations and published product terms.
What makes these banks more accessible to foreign applicants in Malta is that they publish clear lending criteria, have experience processing international income documentation, and often have staff familiar with cross-border customer profiles.
Which banks accept non-resident borrowers in Malta right now?
Banks in Malta that accept non-resident borrowers include HSBC Malta, Bank of Valletta, APS Bank, and MeDirect Malta, though each bank has its own internal policies and not all will approve every non-resident application.
Non-resident applicants in Malta typically face additional requirements such as a higher minimum deposit (usually 25% to 30%), more extensive income documentation, proof of source of funds, and sometimes a requirement to open a local Malta bank account before applying.
Do international banks lend more easily in Malta right now?
International banks in Malta, like HSBC, do not necessarily lend more easily than local banks because all lenders must follow the same Central Bank of Malta affordability rules, but they may have more mature processes for handling cross-border clients.
HSBC Malta is the main international bank with a significant mortgage presence in Malta, and it publishes clear product parameters including maximum LTV ratios and representative interest rates on its website.
The main advantage of using an international bank for a mortgage in Malta is process familiarity with foreign documentation and potentially smoother communication for English-speaking applicants, though this does not translate to more generous loan terms.
We made this infographic to show you how property prices in Malta compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Malta, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Central Bank of Malta - Borrower-Based Measures | It's the central bank's official summary of binding mortgage limits in Malta. | We used it to anchor the hard rules lenders must follow (LTV, stressed DSTI, maturity). We also used it to explain why foreigners typically need larger deposits. |
| Central Bank of Malta - Directive No. 16 | This is the legally binding directive that all Maltese lenders must follow. | We used it to define Category I and Category II borrowers and confirm rules apply to non-residents. We built our income estimates using its stressed affordability formula. |
| ECB Data Portal - Malta Housing Loan Rates | It's the European Central Bank's official dataset for bank interest rates by country. | We used it to ground typical mortgage rate ranges in Malta using consistent methodology. We avoided relying on marketing rates from a single bank. |
| HSBC Malta - Home Loans | It's a major bank's official product page with real published terms. | We used it as a market snapshot of what a Maltese bank advertises in early 2026. We triangulated ECB averages with this real offer. |
| APS Bank - Home Loans | It's an official bank page describing lending and insurance requirements. | We used it to describe typical Maltese mortgage security requirements. We also used it to explain why banks ask for specific policies and paperwork. |
| MTCA - AIP Permit FAQ | It's the official government FAQ for non-resident property purchases in Malta. | We used it to explain when non-residents need an AIP permit and minimum property values. We flagged that permit timing can affect loan timelines. |
| NSO Malta - Labour Force Survey Q3 2025 | It's Malta's official statistics office publishing wage data. | We used it to benchmark typical local income against mortgage affordability requirements. We kept our minimum income section realistic. |
| MFSA - Comparing Loans Using APR | It's Malta's financial regulator explaining the standard cost metric for mortgages. | We used it to teach readers how to compare offers using APRC instead of headline rates. We structured our terms section for easy comparison. |
| Lombard Bank Malta - Home Loans | It's an official bank page that explicitly mentions fixed-rate packages. | We used it to confirm fixed-rate options exist in Malta. We added practical details about when fixed rates start and early repayment fees. |
| NSO Malta - RPPI Q3 2025 | It's Malta's official residential property price index release. | We used it to set the January 2026 market context with prices still rising. We justified why banks are strict on affordability. |
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