Investing in a property for rental purposes is considered a good long-term investment. However, we understand that buying a property is never easy, especially when it is not your first.
We are here to make investing easier than ever, with our Buy-to-Let Home Loan. These custom-tailored loans provide you with the required finances to purchase a property that will be rented out. Moreover, our team of professionals will assist you every step of the way, guiding you through the process and helping you acquire your dream investment property.
Why choose APS Bank:
✓ Our expert team will guide you every step of the way
✓ We are committed to providing quick response times to any queries
✓ One of our professionals will be assigned to you, providing you with the personal attention you deserve
✓ We do our utmost to ensure that the approval process takes the shortest time possible
Why opt for Buy-to-Let Loan:
- Borrow up to €700,000
- Very competitive interest rates
- Part of rental income considered for repayment purposes
- A maximum repayment term of 25 years
What do Buy-to-Let Home Loans entail?
We can finance up to 75% of the total cost of the property - up to €700,000. This balance can then be repaid over a period of 25 years or until you reach retirement age, whichever comes first. Moreover, this can include property acquisition, construction, and finishing costs. Provided that you have a minimum, gross annual income of €35,000. Furthermore, this home loan solution offers competitive interest rates.
An amount of the rental income earned from the property purchased is also taken into consideration for repayment purposes over and above your employment income.
Representative example of a Buy-to-Let Loan
On a fully utilised Buy-to-Let Loan of €150,000, at a variable interest rate of 4% per annum, the Annual Percentage Rate of Charge (APRC) equals to 4.20%. Therefore, the loan would be repayable in 300 equal monthly instalments of €797 over a 25-year period.
The total sum payable throughout the term of the loan would be €240,398.25. Consisting of:
- €150,000 capital (the loan amount)
- €88,908.00 interest
- €450.00 processing fee
- €488.00 in Bank legal fees
- €465.00 in Architect fees
All Buy-to-Let Loans are subject to the final approval from your APS servicing branch.
Assumptions in the APRC calculation
The assumptions in the above APRC calculation are based on the following:
- The consumer lending bank base rate (currently at 2.25%) remains unchanged during the period of the loan.
- The facility is utilised in full within the first 3 months after being sanctioned.
- The consumer has the right to pay the loan in full or in part before the agreed termination. In such circumstances no early repayment penalty fee is incurred.
- The credit agreement is to remain valid for the period agreed between the Bank and the consumer, and that both parties will fulfil their obligations under the term and by the dates specified in the credit agreement.
- The APRC calculation is based on the total cost of the credit to the consumer, expressed as an annual percentage of the total amount of credit.
The worked example does not include the following items as such costs cannot be determined in advance:
- A life assurance policy covering the amount of the facility and a building replacement policy which are to be pledged in favour of the Bank.
- Periodic updating of searches where such fees would incur Public Registry, Bank’s architect fee depending on market value, and Lands Registry fees.
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Life and property insurance are obligatory in order to obtain the loan. The loan is to be secured by a first ranking general and special hypothec and special privilege over the property being financed in Malta, a first ranking pledge over a life assurance policy covering the whole loan amount and a buildings insurance policy for the replacement cost of the property being end-financed. In the event of non-observance of the terms and conditions, including non-adherence to the loan repayments, the bank may take steps to sell the property financed, following legal proceedings, and you may lose the property.
Approved and issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR 4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994. Applications are subject to the Bank’s lending criteria. Terms and conditions apply and are available on request.