First-time property buyers can take advantage of the new Equity Sharing scheme launched yesterday by the Housing Authority, which allocated Lm2 million to help couples, single people and families wishing to become homeowners.

The scheme should help ease, somewhat, the considerable difficulties many potential wage-earning home buyers find themselves in because of the high prices for property.

Housing Authority chairperson Marisa Micallef explained that the scheme is aimed at couples, families or single people who cannot borrow enough to meet the cost of the average first time buyer’s residence.

“We have increased the percentage of money for single people over 30 since we are also aware that one-income households face particular difficulties in accessing the housing market,” she said.

Of the Lm2 million, 40 per cent (Lm800,000) will be allocated to young couples, 40 per cent to families with children, and 20 per cent (Lm400,000) will be allocated to single people, separated people and widowers and widows without children living with them.

The Housing Authority will finance up to Lm7,000 for shell property and Lm10,000 for already existing property.

“There is a lot of property in Malta that is vacant. While we understand that young couples want to start afresh in a new home, it is important to make use of what is already on the market,” said Ms Micallef.

Beneficiaries are not obliged to buy back the investment made by the Housing Authority before 10 years from the date of the contract, she said.

The Housing Authority will obtain the necessary information in order to verify whether the applicant is in a position to pay back or take an additional loan to purchase the share the Authority has in their residence.

The subsidy will not be provided during the promise of sale but only when the final contract is signed, she said.

Furthermore, said Ms Micallef, properties valued not higher than Lm50,000 will be given preference.

Applicants should not have more than Lm15,000 in assets. The yearly income of single people should not exceed Lm10,000 and that of couples not over Lm12,000. When assessing the yearly income of a couple the higher income of one party is taken in full and only one third of the yearly income of the remaining party is taken into account.

Social Solidarity and Family Minister Dolores Cristina said the government was always committed to setting up structures, policies, legislation and measures which strengthen the foundations of society.

“The various schemes offered by the Housing Authority, as well as the social accommodation provided by the Department for Social Housing, constantly seek to identify those areas requiring particular attention and assistance,” said Mrs Cristina.

For more information contact HSBC, BOV and APS Banks and/or the Housing Authority schemes section on 2122-7675, 2122-7679 and 2124-8736.