Anyone seeking to buy a property is likely to need a home loan. One of the main requirements in Malta is to have a ten percent deposit in hand. So to put you into perspective, if you would like to buy an apartment which costs three hundred and fifty thousand Euro, you will need to have a minimum of thirty-five thousand Euro for the deposit. In addition to this, a buyer also needs to cater for tax, notary and agency fees. Gaining enough money for a ten percent deposit is a struggle and in this article we discuss some of the ways to make this happen and get your bank loan!
Control of your money
Start off by understanding your financial situation and keeping track of how you are spending your money. A spreadsheet should suffice. This will enable you to see how much money you are spending and on what, which will allow you to make a strategy on how to trim your costs. It will also enable you to see how much money you can afford for loan repayments, whilst still saving some money!
Speak to the bank
You will need to speak to the bank to see what type of property you should be aiming for based on your income, savings, age and existing debt or financial commitments. You will see how much money a bank is willing to lend you. Whilst it may be tempting to stick to the bank you have always had a relationship with, it is ideal to visit several banks who may tailor a better offer for you with superior interest rates.
Set your objective
Once you know what investment you can go for, it is time to make an objective on how much money you need to save and by when. In your estimates, it is important to cater for unexpected expenses and a certain degree of contingency.
First off you should work on trimming down your entertainment expenses such as holiday trips, five-star restaurants and other money drainers. Also, address those automatic payments which can hit your bank account worse than you expect. Do this by checking out which services you would like to keep. You should also cater to your mobile telephony plan which could cost you more than needed. You may consider setting up an account purely for savings, with standing orders going in on a monthly basis. You should also address any other debts you may have pending.
Ready to buy your property?