Government guaranteed home loans for people with disabilities, medical conditions
A new program will see the government guarantee loans to people struggling to get affordable life insurance.
This program is for those who are denied life insurance or who are forced to pay a high premium on their insurance due to a disability or health problem, past or present.
“The government could not remain silent in the face of these situations,” Prime Minister Robert Abela said at the launch of the program in Castile on Wednesday.
The Prime Minister was referring to a person he had met months before, who fell ill with a serious illness but, despite recovering and holding a stable job, was unable to purchase a residence as no one wanted to offer a life insurance and secure the necessary loan.
“Despite facing her illness with courage, she continued to face the consequences,” he continued.
Social Housing Minister Roderick Galdes shared a similar sentiment. “The past does not guarantee the future […], but for many people this sentence is not true. For many people, the past guarantees the future in that it prejudges it.
He added that this program adopts a model that will reassure banks and potential buyers.
The system is made possible thanks to the National Social and Development Fund, benefiting from funding of 3 million euros via the fund.
To be eligible for the program, one must first try to purchase an insurance policy from a private company, as is usually the case when someone is trying to get a loan from a commercial bank. .
If this person’s request is refused, postponed for 12 months or estimated at two and a half times more expensive than the average price for medical or disability reasons, then they will be eligible for this device.
In this case, this person must complete an application and submit the relevant documents to the Housing Office and the Commission for the Rights of Persons with Disabilities (CRPD).
The two entities will process the application together and possibly issue a certificate and letter of recommendation to the participating banks so that they are able to finalize the loan agreement for the applicant.
The guarantee issued by the Régie du Logement will cover a maximum loan of € 250,000 from any bank participating in the scheme. However, if the applicant is able to obtain another form of collateral in addition to that offered by the Housing Authority, the bank would be free to offer a higher loan amount.
The beneficiary will be asked to pay an annual participation fee to cover the costs of the scheme. These fees will be based on the median premium of the life insurance policies.