The Equity Sharing Scheme introduced today is not a silver bullet which will remove all forms of housing issues, but is part of a sequence of measures which address the different realities people are facing in our society, said Prime Minister Joseph Muscat.

The Prime Minister had announced the launch of this housing scheme in an interview carried by The Malta Independent on Sunday.

The Equity Sharing Scheme, which is a proposed measure from the 2019 Budget, is for people who are over 40 years old and for who find it very difficult to obtain a bank loan. The Prime Minister said that the scheme is part of a holistic approach the government is working on regards the current housing situation.

“We are focusing on affordable housing and a strategy that focuses on the individual.” He said that currently the Rent Law White paper’s proposals are being consulted and soon the measures will be published.

“This is a complete U-turn from the policy direction of 15 years ago, where the government did not focus on the concept of social accommodation. It is this government that has included and worked on social accommodation.”

The scheme acts like a jigsaw puzzle, where each partner plays a role and together forms an innovative solution: Roderick Galdes

Parliamentary Secretary for Social Accommodation Roderick Galdes highlighted that the scheme, along with the aid of the Housing Authority and APS bank helps those individuals who are over 40 years old to obtain a bank loan and purchase a property. He said that around 80% of the Maltese people are home owners, whilst 15% live in rented accommodation that is protected and around 5% live in substandard conditions.

“We face different types of realities, many families who face different realities, and some who struggle due to a separation and cannot afford to buy new property.” He said that these families/ individuals would have money in the bank, but not enough that could afford them a property and they would not be able to apply for a bank loan and have no other alternative than to rent.

“The Housing Authority and APS Bank will finance half the price of the property. After 20 years from the date of sale, the applicant will be obliged to purchase back the investment that the Housing Authority would have made in the purchase of the residence. If the applicant is not in a situation to be able to afford to buy the property, their children or family member will be given the opportunity to do so.”

The Equity Sharing Scheme applies for individuals who are over 40 years or older and are finding it difficult to become home owners, due to having limited amount of assets and facing difficulty in acquiring a bank loan. With the assistance of the Housing Authority and APS Bank, will be offering to those eligible the opportunity to become home owners.

The eligible applicants need to purchase at least 50% of the property whilst the other part will be purchased by the Housing Authority.

Anthony Buttigieg, Head of APS Bank said he was pleased that the bank has taken the initiative to help these individuals who have limited resources to be able to purchase their own property.  “This is another step in the history of APS showing that we are committed to the community of the island and the economy of the population.”

APS Bank will be granting applicants a maximum loan up to €160,000 to purchase a property in finished and habitat state or in shell form state which can be rendered to a habitable state at the total expense of €200,000.

Who is applicable for the equity sharing scheme?

Applicants should not have an annual aggregate income exceeding €40,000

·         Married couples/ two persons who entered in a Civil Union; one of the applicants must be 40 years old on date of application

·         Single parents over 40 years of age with an unmarried son/daughter or unmarried children living with him/her

·         Two persons applying jointly- one applicant must be 40 years of age

·         Single persons must be 40 years or over

·         Legally separated persons over 40 years of age without children living with him/her

·         Applicants must be Maltese citizen or citizens of the European Union.

·         Applicants have been permanently residing in Malta for at least a year in the previous 18 months

·         During the preceding year of application, applicants should not have an annual aggregate income exceeding €40,000