Calculator for First-Time Buyers – PN Proposal

First-Time Buyer Calculator

How much will you save?

Calculate your total benefit under the proposed first-time buyer scheme: an interest-free deposit loan and a direct cash refund of 50% of mortgage interest for the first ten years.

How much will you save?

Calculate your total benefit under the proposed first-time buyer scheme: an interest-free deposit loan and a direct cash refund of 50% of mortgage interest for the first ten years.

Your details

Property value €250,000

€100,000 €800,000

Market mortgage interest rate 3.00%

0.50% 6.00%

New How the interest refund works: You pay the full market mortgage rate to the bank. Each month the government refunds 50% of the mortgage interest you paid, capped at 1.25 percentage points of your outstanding balance. As your loan balance falls over time through amortisation, the cap (and therefore the refund) declines accordingly. The refund is paid as a direct cash transfer — every eligible buyer receives the full amount, regardless of income or tax situation.

How the scheme works

Interest-free deposit loan: Government lends 10% of property value, on properties up to €450,000 (maximum €45,000). Repayable over 40 years, no interest.

Direct interest refund: Each month for the first 10 years, the government refunds you 50% of the mortgage interest you paid, capped at 1.25 percentage points of your outstanding balance, on the first €405,000 of bank loan. As your balance amortises, the cap declines — the refund tracks the actual interest you’re paying. Paid as a direct cash transfer (not through the tax system), so every eligible household receives the full amount.

Tax bands: Proposed bands lift the 0% threshold and the 25% ceiling, leaving more in households’ pockets.

Assumptions

Mortgage term: 40 years (CBM Directive No. 16 maximum for first-time buyers). Deposit loan term: 40 years, interest-free. Tax savings compared against current 2026 bands as published in Budget Speech 2026.

Your savings

Total savings over 10 years

€0

Interest refund + interest-free deposit-loan saving

PER YEAR €0

PER MONTH €0

Savings breakdown — annual & monthly

	Per year	Per month
Interest saved on 10% deposit interest-free over 40 yrs, savings in first 10 yrs	€0	€0
Interest saved on 90% loan (refund) direct cash refund, averaged over 10-yr scheme	€0	€0
Total savings during 10-year scheme	€0	€0

All figures above are averages over the 10-year scheme window. After year 10, the mortgage interest refund ends and the buyer pays the full market rate on the remaining bank loan, while the deposit loan continues to be repaid interest-free for the remainder of its 40-year term.

Year 1 cash flow

Monthly mortgage payment (full market rate)	€0
Monthly deposit-loan repayment	€0
Total monthly outflow to bank / government	€0
Less: monthly interest refund (Year 1 avg)	€0
Net effective monthly cost (after refund)	€0

Financing structure

Property value	€0
Government deposit loan (10%, interest-free)	€0
Bank mortgage (at full market rate)	€0
Of which: refund-eligible principal	€0
Of which: non-eligible principal (above €405k cap)	€0

10-year benefit overview

Interest refund

€0

Deposit interest

€0

Mortgage interest refund (direct cash, 10-year total)	€0
Interest saved on deposit loan (during first 10 years)	€0
Total savings over 10 years	€0

The figures above do not include the existing First-Time Buyer Grant of €10,000 over 10 years, the stamp duty exemption on the first €350,000, the UCA / vacant property grant (€15,000 in Malta or €40,000 in Gozo), or the VAT refund on restoration (up to €54,000). A real-world buyer would benefit from these in addition to the figures shown.

How does this compare?

Side-by-side total 10-year benefit (including all grants and interest savings) versus the present scheme and Labour’s 2026 election proposal.

Current scheme

In the budget today

Eligible

Total 10-year benefit

€0

10% deposit cap €22,500 · prop. cap €225,000

Deposit interest saved€0

FTB grant (10 yrs)€0

Stamp duty exemption€0

Labour’s 2026 proposal

“My First Home”

Eligible

Total 10-year benefit

€0

25% equity cap €350,000 · stamp duty to €300k

Interest savings (equity)€0

FTB grant (10 yrs)€0

Stamp duty exemption€0

Ancillary refund€0

Our proposal

PN — Nifs Ġdid

Eligible

Total 10-year benefit

€0

10% deposit cap €45,000 · interest refund on mortgage

Mortgage interest refund€0

Deposit interest saved€0

FTB grant (10 yrs)€0

Stamp duty exemption€0

Current

€0

Labour

€0

PN — Nifs Ġdid

€0

How to read this: All three schemes provide some combination of interest-free help on the deposit, interest savings on the mortgage, and direct grants. The total above is the cumulative 10-year financial benefit at the property value and market rate you’ve selected. Labour’s headline savings of €65,000–€75,000 quoted in their materials apply only at the property caps of the “My First Home” scheme and assume higher market rates than current conditions; at current Maltese rates of around 3%, the actual 10-year benefit is closer to the figure shown above.