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Home Loans

How will I know if I am eligible for a MeDirect Home Loan?

If you are looking to either purchase your primary or secondary residential property or else refinance your existing home loan facility, we would be able to assess if we can offer you our home loan product. You would need to be over 18 years of age, have an income and enough savings to cover at least 10% of the property cost for your primary residence or at least 15% if you are looking to buy your secondary residence. We will  guide and help you finance all the costs in relation to the acquisition, construction and finishing your property.

How much is the maximum amount I can borrow?

When assessing your borrowing capacity, we will look at your overall financial situation. This mainly includes: Your current income Your financial commitments Our Eligibility Calculator will help you get a better understanding of the maximum amount you will be able to borrow.

How much would my initial deposit need to be?

This will be defined depending on which type of residence you are looking to purchase.   Maximum Loan Amount of the Total Project Cost Initial Contribution of the Total Project Cost Acquisition of Primary Residence Up to 90%* 10% Acquisition of Second Property Up to 75%* 25% * Terms & Conditions apply.

What do the terms primary and secondary residence mean?

Primary residence would be the residence you live in or intend to live in. Secondary residence would be the residence you intend to occupy, in addition to the primary residence typically this would be your vacation or recreational home.

What is the Borrower-Based Measures Directive and how will it affect me as a borrower?

The Borrower-Based Measures Directive was issued by the Central Bank of Malta (CBM) in March 2019 to protect both the banks and the borrowers from potential damage deriving from the real estate market. Such measures set limits on the amount of money you as a borrower would be able to borrow and the maximum years you have to fully repay the loan. After taking into consideration what property you will be purchasing and whether you hold any other home loans, you will be classified in one of the two categories determined by the CBM; each category with its own limitation.

How will I know under which Category will I, as a borrower, fall under?

The CBM has defined two categories and you would be classified under one of the two on the basis of: whether the property you will be purchasing will be your primary residence – meaning the property you live in or intend to live in. whether you as a borrower would have any outstanding home loans on the contract signing date of your new property.

What is the maximum term I can avail of?

This depends on the Category you would fall under.Category 1 – Maximum term of 40 years or the official retirement age. *Category 2 – Maximum term of 25 years or the official retirement age. * *Official Retirement Age:1952 – 1955: 62 years1956 – 1958: 63 years1959 – 1961: 64 yearsBorn after 1961: 65 years

What is the difference between Interest Rate & APR Rate?

The Interest Rate is the actual rate at which interest is charged on the amount you are borrowing. APR stands for the Annual Percentage Rate, which is the total cost of your mortgage over its full term, taking into consideration both the interest rate being charged and all other obligatory fees you will be paying for the duration of the loan.

What insurances will I need to have to be able to take out a home loan?

After the sanction letter is issued and prior to the contract date being set, you will be required to provide us with the original certificates for the following insurances: Life Insurance House / Buildings Insurance Additional insurances might be required, depending on the nature of the home loan facility.

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We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.