roi.mt

Malta · Mortgage Affordability

How much can you borrow?

By Ian Grima Mahoney · Updated May 2026

How much can you actually borrow in Malta? Models the CBM stress test (+200 bps) and category limits (90% LTV first-time buyer, 75% subsequent) under CBM Directive No. 16 — so you see your real ceiling, not the bank's pitch. Data current as of April 2026.

How much you can borrow in Malta is bounded by 40% DSTI (debt servicing as a share of gross monthly income) and LTV caps — 90% for primary residence, 75% for buy-to-let, as low as 65% for non-resident BTL with HSBC. Both are stress-tested at +200 bps under CBM Directive No. 16. The calculator runs the full math, includes indicative variable rates from BOV, HSBC, APS, and MeDirect, and shows a ±50 bps rate-sensitivity table so you see your real ceiling, not the bank's pitch. Budget 2026 raised the Housing Authority deposit-loan ceiling to €250,000 — see the Budget 2026 summary for what that unlocks for first-time buyers.

Source: CBM Directive No. 16 — Borrower-Based Measures, effective 26 March 2026.

Want the full breakdown? Read the guide: How the Malta mortgage stress test really works →

€
Your total salary before tax (gross).
€
Optional — leave as 0 for a sole application.
€
Car loans, credit cards, hire purchase — but not the new mortgage.
yrs
Used to calculate the maximum loan term (retirement age − your age).
% p.a.
Default 3.0% — edit to see how the table below shifts.
Stress test: +200 bps locked. Affordability is sized at 5.0%.

CBM Directive No. 16 requires banks to add at least 150 bps to your rate when calculating affordability. We use +200 bps as a conservative default. This means the maximum loan is sized so you can still afford it at the stressed rate. The stress test protects you from rate rises — if rates increase after you take out your mortgage, you should still be within the 40% DSTI limit.

Frequently asked questions

What is the CBM Directive 16 stress test?

CBM Directive No. 16 (Borrower-Based Measures, effective 26 March 2026) requires Maltese banks to size your maximum loan as if your interest rate were at least 150 basis points higher than the actual contract rate. roi.mt uses +200 bps as a conservative default.

At the stressed rate your monthly mortgage payment plus other monthly debt obligations may not exceed 40% DSTI (Debt-Service-to-Income) of gross monthly income.

The point is protection — if rates rise after you draw the mortgage, you should still be inside the 40% DSTI envelope. The breakdown panel above shows your stressed rate and stressed DSTI so you can see the math.

What is the maximum LTV in Malta?

Two ceilings under CBM Directive 16:

  • Category I — primary residence (first-time buyer or moving home): 90% LTV, so a minimum 10% deposit.
  • Category II — second property or buy-to-let: 75% LTV.

Banks may apply stricter caps in specific situations — HSBC, for example, publishes a 65% LTV cap for non-resident buy-to-let.

Note that the calculator's max-loan figure is the lesser of (a) what your income supports under the stress test and (b) the LTV ceiling against the property price — your real ceiling is whichever bites first.

How much can I borrow for a mortgage in Malta?

Roughly the smaller of two numbers:

  1. The income cap. Gross monthly income × 40% DSTI minus existing monthly debts gives the maximum payment you can stress-test, which back-solves into a loan amount at the stressed rate over your maximum tenor (retirement age 65 minus your age, capped at 40 years).
  2. The LTV cap. 90% × property price for primary residence, 75% for buy-to-let.

The calculator above computes both and reports the lower one. As a rough rule of thumb, a sole applicant earning €30,000 gross with no existing debts can borrow around €170,000–€200,000 at current Malta rates — but every input shifts that, especially age and the 200 bps rate buffer.

Which banks offer mortgages to non-residents in Malta?

All four banks covered by the calculator — Bank of Valletta (BOV), HSBC Malta, APS Bank, and MeDirect — lend to non-EU buyers, but the conditions are stricter than for residents.

  • HSBC publishes a 65% LTV cap for non-resident buy-to-let (vs 75% for residents).
  • BOV and APS handle non-resident applications case-by-case and typically require a larger deposit, proof of income, and an Acquisition of Immovable Property (AIP) permit if buying outside a Special Designated Area.
  • EU/EEA citizens have the same access as Maltese citizens.

Always confirm the current criteria directly with the lender — conditions change and the calculator's defaults reflect resident lending.

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