Foreign buyers can get a mortgage from a Maltese bank, but approval and terms depend heavily on residency status, income stability and deposit size. Maltese banks apply a stressed affordability test to both residents and non-residents under Central Bank of Malta rules.
Deposit and loan-to-value
Non-resident buyers should generally expect a larger deposit requirement than Maltese residents:
- EU/resident buyers: loan-to-value up to roughly 90% at the higher end.
- Non-resident or buy-to-let borrowers: loan-to-value more commonly in the 60–70% range.
- Non-EU nationals specifically: a deposit of 30–40% is common.
Lenders generally require the deposit to come from the borrower’s own funds rather than being itself borrowed.
Income and affordability
The key factors banks weigh are stable euro-denominated income, Maltese residency or local employment, a clear and documented source of funds, and whether the property’s intended use (owner-occupied vs rental) is one the bank accepts. Most lenders cap monthly mortgage repayments at roughly 25–40% of net monthly income. As a rough illustration, a €300,000 mortgage over 25 years has been cited as needing a net income in the region of €4,100–€6,600 per month, depending on the rate and the bank’s specific affordability model.
Current rates
Mortgage rates in Malta have been cited in the region of 3.5–5.5% for variable-rate lending in 2026, with fixed rates typically somewhat higher. Central Bank of Malta’s own published data puts the national weighted average rate on new house-purchase lending noticeably lower than that - see Malta Mortgage Rates vs the ECB for the actual figures and why an individual quote, especially for a non-resident or buy-to-let borrower, can sit well above the national average. Rates and lending appetite change with the broader interest rate environment, so treat any specific figure as indicative rather than a quote.
Which banks
The banks most commonly cited as active with foreign mortgage applicants are HSBC Malta, Bank of Valletta, and APS Bank. Terms and risk appetite vary meaningfully between lenders, so foreign buyers are generally advised to approach more than one bank, ideally with the help of a local mortgage broker who works with non-resident applicants.
How this fits the buying process
A mortgage condition is commonly written into the promise of sale agreement, giving the buyer an exit if financing falls through. Buyers should get an agreement-in-principle from a lender before signing a konvenju wherever possible, rather than after.