New Hope Scheme

Overview

Maltese banks generally require a life insurance policy before granting a home loan. For most buyers this is a formality. For someone who has survived a serious illness, or lives with a disability or a chronic condition, it can be the single obstacle that ends the purchase, because insurers decline the policy or price it so far above the market that it becomes unaffordable. The result is a buyer the bank considers entirely creditworthy who still cannot buy.

The New Hope Scheme removes that obstacle by substituting the Housing Authority for the insurer. The Authority provides a revolving limited guarantee to participating banks, backed by a ring fenced fund held within Malta's National Development and Social Fund, standing in place of the life insurance policy the bank would otherwise insist on.

Who This Is For

The property must be the applicant's own primary residence, occupied within six months of the deed if finished, or within two years if bought in shell form. Investment purchases fall outside the scheme.

Eligibility

The defining requirement is evidence of genuine exclusion from life insurance. An applicant qualifies by having been refused by two local life insurance providers, by having an application deferred for twelve months, or by being quoted a premium equal to or above 250 per cent of the average for their age group. The Commission for the Rights of Persons with Disabilities then screens the applicant to confirm that the medical condition genuinely impedes their participation in the property market, and the Authority liaises with the Commission before approaching the banks.

Beyond that, the familiar Housing Authority conditions apply. Applicants must be 18 or over, with both applicants over 18 in a joint application. They must be Maltese or EU citizens, with EU citizens acquiring their first residence and at least one Maltese citizen in a couple. At least one applicant needs a year of full time employment, and the applicants must have lived permanently in Malta for at least a year within the previous eighteen months. They cannot already own habitable property or land carrying a building permit.

Three specific bars are worth knowing in advance. Holding a valid life insurance policy disqualifies an applicant, which follows from the scheme's purpose. So does already owning an adequate residential unit. And an applicant cannot be in the process of applying for the Equity Sharing Scheme at the same time, so the two cannot be combined.

What It Offers

The Housing Authority guarantees a home loan of up to €250,000. Banks retain discretion to lend above that figure where the borrower provides other security for the excess, so the guarantee sets the Authority's exposure rather than an absolute ceiling on the purchase.

The applicant still funds at least ten per cent of the price from personal savings and takes a conventional home loan for the remainder through a participating bank, on a term of up to 40 years, repayable in full with interest by the time the applicant, or the elder of two joint applicants, reaches 65.

In place of an insurance premium, beneficiaries pay an annual participation fee to the Authority, priced according to their age and the amount guaranteed, and quoted before the Authority issues its letter of recommendation to the bank.

What Happens If The Applicant Dies

This is the scenario the guarantee exists to cover, and the terms deal with it carefully. The Housing Authority continues the loan payments for up to three months after the applicant's death, giving the heirs time to decide between three routes: selling the property and settling the outstanding facility from the proceeds, negotiating a re-mortgage and taking over the repayments themselves subject to the bank's approval, or transferring the outstanding obligation to the Authority in exchange for an equity sharing arrangement, under which the Authority acquires a share of the property reflecting the amount still owed.

Where that third route is taken, the twenty years that follow work in stages. If the heirs haven't bought out the Authority's share by then, and haven't arranged to pay it off in instalments either, they become liable for a periodic payment set by the Authority as compensation for occupying a share they don't own. At that point the Authority may, at its discretion, give the heirs' own children the opportunity to complete the purchase instead, or agree an instalment plan, in which case the value of the Authority's share is revised upward to reflect twenty years of inflation. If neither resolves the position, the Authority can ultimately buy out the heirs' share itself and become the property's sole owner, and the heirs cannot refuse an offer that matches the agreed valuation.

Applying

The Housing Authority processes the first 120 valid and eligible applications on a first come, first served basis, and an application only counts as valid once the guarantee is issued in the bank's favour on the date of the deed. The Authority appears on the deed as guarantor and must be told the date and location of signing at least fourteen days beforehand.

Applications carry a €20 administrative charge, plus a further charge covering the Authority's research on the applicant.

How to Apply

Forms are available from the Housing 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. All applicants must sign and submit the form in person, with the documentation supporting the medical assessment.

What Can End or Block It

Transferring the property before the loan is repaid requires notifying both the Housing Authority and the bank at least two months before the final deed. False declarations carry a fine at the Authority's discretion, a five year ban from every Housing Authority scheme, and the possibility of criminal proceedings.

Because the scheme is capped at a fixed number of applications, availability is worth confirming with the Housing Authority before relying on it.

Source & Verification

This summary draws on the Housing Authority's New Hope Scheme page and its full Terms and Conditions, cross checked clause by clause and last verified on 4 August 2026.

• Scheme page: https://housingauthority.gov.mt/scheme/new-hope-scheme/
• Terms and Conditions (PDF): https://housingauthority.gov.mt/wp-content/uploads/2022/08/Scheme-Impaired-Lives-Guarantee-Fund-English.pdf

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.