Equity Sharing Scheme

Overview

Some buyers can comfortably afford a mortgage payment but cannot borrow enough to reach the asking price, usually because of their age or their income. A bank lending over a shorter term, or lending against a modest salary, simply will not stretch far enough. The Equity Sharing Scheme addresses that gap in an unusual way: rather than lending more, the Housing Authority buys part of the property alongside the applicant and becomes a co-owner.

The applicant funds at least half the price through savings and a bank loan. The Authority covers the rest. Twenty years later, the applicant buys out the Authority's share at exactly the price the Authority originally paid, with no interest and no inflation added.

Who This Is For

This is a scheme for people buying a home to live in. While the Authority remains a co-owner, the property must be used solely as the applicant's own residence, and it cannot be let to anyone else. Investment purchases fall outside it.

Eligibility

Under the Housing Authority's currently published Terms and Conditions, applicants must be 30 or older. That applies to single people, single parents with unmarried children, legally separated persons, and, for couples or civil unions applying jointly, at least one partner. Applicants must be Maltese citizens or EU citizens acquiring their first residence in Malta, with at least one Maltese citizen in a joint application, and must have lived permanently in Malta for at least a year within the previous eighteen months. At least one applicant needs a year of full time employment behind them.

Income is capped by age band: up to €25,000 for applicants aged 30 to 34, up to €30,000 for those aged 35 to 39, and up to €40,000 for those 40 and over. Applicants cannot already own habitable property or land carrying a building permit.

One caution on the age threshold. A Housing Authority press release from April 2026 announced that the scheme would open to applicants aged 25 and over, and that separated persons aged 40 and above buying out a matrimonial home would benefit from a raised property cap of €350,000. Neither change appears in the Authority's published Terms and Conditions as things stand, so both should be treated as announced rather than confirmed in force, and checked directly with the Housing Authority.

What It Offers

The property being purchased is capped at €250,000, including finishing costs where it is bought in shell form. The applicant must fund at least ten per cent from personal savings, with APS Bank plc providing a loan for their share over a term of up to 20 years, repayable by age 65. The Housing Authority then invests between €20,000 and €100,000 for its own share, which can never exceed half the property.

The buyback after 20 years is the part worth understanding properly. Paying the same price the Authority paid, two decades on, is a genuine benefit in a rising market. But if the applicant cannot afford the buyout when the time comes, the terms change: the Authority may at its discretion allow the applicant's children or heirs to purchase the share instead, or agree an instalment plan. In that instalment scenario the value of the Authority's share is revised upward to reflect twenty years of inflation, which removes the original advantage.

Applying

Applications carry a €20 administrative charge, plus a further charge covering the research the Housing Authority carries out on the applicant. Forms are available from the Authority's offices at 22 Pietro Floriani Street in Floriana and its Gozo branch at 25 Enrico Mizzi Street in Victoria, or from the Housing Authority website, and must be signed and submitted in person by all applicants.

Living With Co-Ownership

Co-ownership carries obligations that continue for as long as the Authority holds its share. The applicant is responsible for all ordinary and extraordinary maintenance and repairs, must keep the property in good condition, and must live in it as their ordinary residence for at least twenty years from the date of purchase. Renting it out, allowing anyone else to occupy it, or making structural alterations without written approval are all prohibited.

Selling to a third party is not straightforward either. The applicant cannot sell their share alone; the Authority's share must be included in any sale, the Authority must consent in writing, and the sale price must be agreed with the Authority beforehand. Where the applicant paid for finishing works themselves, an architect appointed by the Authority calculates the value of those improvements so the applicant is reimbursed for them.

What Can End or Block It

Income above the relevant age band threshold, or already owning qualifying property, disqualifies an application outright. False declarations carry a fine set at the Authority's discretion, a five year ban from every Housing Authority scheme, and the possibility of criminal proceedings.

Source & Verification

This summary draws on the Housing Authority's Equity Sharing Scheme page, its full Terms and Conditions, and an April 2026 Housing Authority press release describing planned changes, cross checked clause by clause and last verified on 4 August 2026.

• Scheme page: https://housingauthority.gov.mt/scheme/equity-sharing-scheme/
• Terms and Conditions (PDF): https://housingauthority.gov.mt/wp-content/uploads/2023/09/Equity-Sharing-Conditions-English-2023.pdf
• Press release on announced changes: https://housingauthority.gov.mt/discover-press-releases/e6-5-million-invested-in-over-900-families/

Disclaimer: This information is provided for general awareness only and does not constitute financial or legal advice. Schemes are reviewed and amended periodically, so availability, amounts, deadlines and eligibility criteria may have changed since this page was last verified. Always confirm current details on the official Housing Authority scheme page before applying or making any decision.