Following the recent announcement by the Ministry of Finance regarding the launch the Home Equity Release for pensioners, MFSA has issued a set of Q&As about the regulatory framework.

10 things you need to know about the Equity Release Financial Products 


1. This product offers pensioners the possibility to translate part of the value of their property into a liquid asset.

2. By entering into this contract, the pensioner will have more cash in hand whilst enjoying their retirement in their own home.

3. Individuals who subscribe to this scheme will be essentially taking out a loan in exchange for regular income. The loan will be repaid when the property is sold.


4. This product can be offered by licensed credit and financial institutions operating in or from Malta.

5. MFSA is currently working on the regulatory framework that needs to be in place for it to regulate the equity release financial product.

6. The equity release financial products regulations [Regulations’] will come into force on September 1, 2019. After this date no credit or financial institutions can offer such product without being duly authorised.

7. Any licensed institutions providing such financial products will have one year to comply with the requirements set out in the Regulations published by the Authority.


8. MFSA encourages interested individuals to seek independent professional advice and weigh their options before entering into an equity release transaction for the first time.

9. It is your right to receive all the information you need to make an informed decision.

10. MFSA will issue further updates once the framework comes into force. The public is encouraged to follow the Authority’s channels on Linkedin, Twitter and Facebook, or alternatively visit for the latest updates.