PN first-time buyer scheme would help just 750 people in 10 years, Caruana says
Scheme will cover just one-third of first-time buyers in a year, Finance Minister says
Only 750 people will benefit over 10 years from the Nationalist Party’s proposal to cover half the home loan interest of first-time buyers, Finance Minister Clyde Caruana claimed on Thursday.
Speaking during a Labour news conference, Caruana said the €2.8 million the PN budgeted annually for the scheme will be exhausted after just 750 applications by first-time buyers.
Opposition leader Alex Borg pledged that first-time buyers could benefit from up to around €46,800 in direct assistance on these loan subsidies.
Picking these numbers apart, Caruana said there are 2,300 first-time buyers annually, meaning just one-third of those will benefit from the PN’s proposal.
After the first year, Caruana claimed that no new first-time buyers would benefit from the scheme, as the €2.8 million budget would be used to cover the loan subsidies of the original 750 first-time buyers.
“No one new can benefit because the budget will be exhausted. The PN is promising a lot; it is promising everything to everyone, and it is forgetting to do its calculations,” Caruana said.
He warned that if elected, the PN will either have to renege on its promises, change them or put the country’s finances at risk.
Parliamentary secretary Andy Ellul said Labour has allocated €36 million for its measures targeted at first-time buyers.
Under Labour’s plans, first-time property buyers will receive an interest-free loan for a quarter of the value of their property, with other incentives for families looking to move into a larger property.
Dubbed ‘My First Home,’ the proposal pledges an interest-free loan of up to 25% of a property’s value, helping first-time buyers over the age of 23 cover the costs of their first property.
A single buyer earning under €40,000 will receive a loan on a property of a value up to €300,000. This rises to €350,000 for couples earning up to €60,000 between them.
Buyers will then be able to repay the loan later in life, until they reach the age of 65.