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3 steps to follow when applying for a home loan

Buying a home can be a fun and exciting experience, however, finding the right property is just the initial step towards being the owner of your own house.  Like any successful project, homebuying must be well planned from beginning to end, particularly when it comes to choosing the right home loan to suit your needs. 

Here are three important steps that you would need to follow when purchasing  your dream property.

1.        Initial Deposit

The required upfront contribution can differ depending on the purpose of the loan and on the lending institution.  In most cases, this would be 10% of the total property price for first time buyers, and 25% for second time buyers.  You must plan ahead to ensure that you have the required amount saved before applying for your home loan.

2.         Affordability

To avoid any disappointment, before you start hunting for your dream home it would be ideal to shop around for the best possible financing; this will give you a clear idea of the property you can afford to purchase.

Finding the right home loan is the key to a successful purchase and different banks offer different loan products. When visiting the bank, to obtain information on your maximum Home Loan affordability, one should provide the officer with basic information and documentation such as Identification Document, latest 3 months’ payslips, latest FS3 and any additional information regarding existing monthly commitments you might have.

3.        Bank Loan Application

Once you have signed a Promise of Sale, which is an agreement between yourself and the vendor in relation to the property you are interested in purchasing, you would need to set an appointment with the bank to provide them with the required documentation so they can work on finalising an application. Once the application is approved, the Bank will issue a sanction letter, which is an official document which confirms that the Bank commits to granting you a Home Loan subject to the conditions mentioned in this document are provided and in good order. Upon signing such a letter, you shall hand a copy to your notary to be able to initiate the required searches and once these are finalised, the notary shall then forward all findings to the Bank’s Legal Department for final vetting.

Simultaneously, you would be required to appoint an Architect to inspect the property and provide the Bank with the relevant documentation, as well as apply for Life and Buildings Insurances. These documentations shall all be handed over to the Bank before being able to set up an appointment for  the Deed.

Why MeDirect is the right choice for you?

Our Home Loan product is designed to be in your best interest; a team of qualified home loan advisors will guide you from the initial quote stage, up until becoming a Homeowner.

Main advantages of taking your home loan with MeDirect:

  • No Bank Processing and Legal Fees.
  • Partial refund on the notarial fees involved.
  • Advantageous interest rates.
  • Flexible meeting times, being held both virtually and at our investment centres in Sliema & Gozo.
  • Faster than market turnaround times when issuing the sanction letter .

Our online eligibility calculator gives you clearer indication of the Home Loan you can afford depending on your current income and commitments: https://www.medirect.com.mt/home-loans

We do understand that this process is somewhat time-consuming, however our officers’ aim is to make it simpler and easier by guiding you in every step of the way.

Get in touch with one of our licensed advisors on 25574400 or on homeloans@medirect.com.mt.



MeDirect Bank (Malta) plc, company registration number C34125, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370). 

MeDirect Bank (Malta) plc, is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.

Join MeDirect today to access the tools you need to put your money to work on your own terms.

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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.