PN Proposes Up To €45,000 Interest-Free Help For First-Time Buyers’ Deposits

Alex Borg explained that the PN wants to make it easier for young people and first-time buyers to purchase a home by extending the government’s deposit assistance scheme.

In simple terms, many people today can afford to pay a monthly home loan, but struggle to save the large amount of money needed upfront as a deposit. Currently, the government helps first-time buyers by giving them an interest-free amount equivalent to 10% of the property value, which is then paid back slowly over 40 years together with the home loan. However, this only applies to properties worth up to €225,000.

Under the PN’s proposal, the limit would increase to €450,000. This means that someone buying a property worth €400,000 could receive up to €40,000 in government assistance to help cover the deposit, without paying interest on that amount.

The PN also announced another proposal aimed at reducing the monthly financial burden on buyers. Under the plan, the government would pay back half of the interest on a home loan during the first 10 years. This assistance would be deposited directly into the buyer’s bank account every month. According to the PN, a first-time buyer could benefit from up to around €46,800 in direct assistance through this measure.

The proposals aim to help more people enter the property market earlier, especially young couples and first-time buyers who find it difficult to save tens of thousands of euros before purchasing a home. By spreading repayments over many years and reducing loan-related costs, the scheme is intended to ease the financial pressure many buyers face at the beginning of the process.

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