Malta affordability calculator
Work out the maximum property price you can target based on your gross annual income, existing monthly debts, and available deposit.
Before you start browsing properties in Malta, the first practical question is how much you can realistically borrow. Maltese banks typically apply an income multiplier of 4.5 times your gross annual income, reduced by any existing debt commitments. The resulting figure is your indicative maximum loan amount.
On top of the income test, banks cap lending at 80% loan-to-value (LTV) for standard residential purchases. This means your available deposit constrains the maximum property price independently of your income. If your deposit only covers 20% of a lower figure than the income test suggests, the deposit becomes the binding constraint.
This calculator combines both constraints to give you a realistic maximum purchase price. It also estimates the monthly mortgage repayment at the current illustrative rate of 4.5% over 25 years, so you can check whether the resulting payment fits your monthly budget before you commit to viewings. The output is educational, not a binding offer from any bank.
Maximum property price
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0% loan-to-value at 4.5% over 25 years
- Maximum loan
- €0
- Your deposit
- €0
- Estimated monthly payment
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Illustrative only. Actual lending depends on bank policy, credit history, employment status, and property valuation. This is not a mortgage offer.
How the affordability calculation works
Maltese banks assess mortgage affordability using two independent caps. Both must be satisfied for the loan to proceed.
- Income multiplier: your gross annual income is multiplied by 4.5. Existing monthly debt repayments are annualised and subtracted from the result.
- LTV cap: most standard residential mortgages are capped at 80% LTV, meaning you need at least 20% deposit. Some banks offer 90% for first-time buyers under specific schemes.
- The binding constraint is whichever produces the lower loan amount. If your deposit only supports a smaller property than your income would allow, the deposit is your bottleneck.
- The monthly payment is estimated using a standard amortising formula at 4.5% fixed over 25 years. Actual bank rates range from 2.5% to 5% depending on the product and your profile.
Affordability FAQs
What income multiplier do Maltese banks use?
Most Maltese banks use a multiplier between 4x and 5x gross annual income. The most common figure is 4.5x. The exact multiplier depends on the bank, your employment status (permanent vs contract vs self-employed), and your debt-to-income ratio. Joint applicants can combine incomes.
What is the minimum deposit for a Malta mortgage?
Standard LTV is 80%, meaning a 20% deposit. First-time buyers may access 90% LTV products from BOV and HSBC under specific eligibility criteria (age, property value ceiling, primary residence only). The 2026 budget introduced a deposit assistance scheme for first-time buyers purchasing under 250,000 EUR.
Can foreigners get a mortgage in Malta?
Yes. All major Maltese banks lend to foreign buyers. EU citizens get similar terms to Maltese residents. Non-EU buyers typically face stricter LTV limits (60 to 75%) and higher margins, plus additional income documentation requirements. The loan is denominated in euro regardless of nationality.
What is the current mortgage rate in Malta?
As of 2026, variable rates run 2.5 to 3.5% and promotional fixed-period products (2 to 5 years) sit around 1.5 to 2.5%. The illustrative rate used in this calculator (4.5%) is deliberately conservative to show worst-case monthly payments. Always check each bank's current rate page for live figures.
Does existing debt reduce my borrowing capacity?
Yes. Monthly debt repayments (car loans, personal loans, credit card minimum payments) are annualised and subtracted from the income-multiplier result. A 500 EUR per month car loan reduces your maximum loan by approximately 27,000 EUR (500 x 12 x 4.5). Clearing debts before applying significantly increases your ceiling.
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