Minister for Social Accommodation Roderick Galdes met with APS Bank, the first bank to confirm its participation in the New Hope Guarantee scheme. Through the scheme, which has been announced in recent days, people who have had or have a serious illness or disability will be assisted by the government to become homeowners.
The agreement between the Housing Authority and the bank was signed during the meeting to enable the scheme to come into force.
Maltese banks, which act with diligence and seriousness, will need a life insurance policy to lend money to interested customers. This is done so that their customers’ heirs have their minds at rest if a casualty arises. This criterion brings sadness and frustration among those who have gone through medical complications or those with a disability.
This scheme will not be an insurance policy, but it will offer a safer alternative to the banks so that the loan can be granted without increased risk to the beneficiary’s relatives. The government will be assisting these individuals with a guarantee that will cover a maximum loan of €250,000 on property that will be used as a primary residence.
In Minister Galdes’ words, these people will not be left in the dark. They will be given new hope to make their dream of becoming homeowners come true.
“As the name suggests, the New Hope guarantee will give new hope to many people who to this day have lived in despair,” stated Minister Galdes. He added that this agreement shows the trust of various entities in the government’s social vision.
The minister argued that in recent years, “The Ministry for Social Accommodation, together with the Housing Authority, has pushed for a strong element of social innovation, but this would not have resulted in anything if we hadn’t found partners, including banks, who believe in this vision and share social consciousness”.
CEO of APS Bank Marcel Cassar said, “When we were asked by Minister Galdes and the Housing Authority CEO, Mr McKay, to collaborate with them on this project, our reply was a resounding ‘yes’. As a bank active in the home loan market, we are saddened by those cases where aspiring homeowners with a medical condition or history are unable to obtain a life insurance policy. And while we try to manage this risk as best as possible, there will still be situations where the gap is too big”.
“The New Hope: Guarantee Scheme fills that gap in a very flexible and practical way. We are very pleased to have worked efficiently with a great team from the Ministry and the Housing Authority to be where we are today. Because this is not simply a scheme about loans that come supported with a government guarantee – these are loans that change lives,” concluded Mr Cassar.
Housing Authority CEO Leonid McKay, who was also present at this meeting, explained that “The effectiveness of the scheme is that it addresses a small group of people who for many people should be invisible. The vulnerability of these people is not necessarily linked to income but still prevents them from the property market. With such a scheme we are showing where the State should guide the market.”
Source: Office of the Prime Minister