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Money matters

Expat working here cant get a Loan?

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Expat working here cant get a Loan?

Postby edsmith » Thu 28 Apr 2011 10:50 GMT

Hi,

I’ve been working here for 3 months now, had Maltese Id for 6, so I thought I would go to the bank and find out when it would be possible to get a car loan, apparently never unless I’ve either got the same amount in the bank (if I did I wouldn’t need a loan) or get married to a Maltese Girl (don’t think my Maltese girl would be happy if I told her that is why I want to get married!)

They also said credit cards would be hard to get.

This was Banif bank, I guess it will be the same with all banks?

So I will never be able to get a mortgage to buy somewhere unless I’m married to a Maltese Girl? even if i been living here say 3-4 years?

Thanks
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Postby gozomark » Thu 28 Apr 2011 11:55 GMT

Maltese banks are very conservative in their lending practices, so it doesn't surprise me. Locals also find it difficult to borrow without collateral. You may find more success with HSBC.

Would your company lend you the money ?
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Postby Terrakka » Thu 28 Apr 2011 14:58 GMT

I can tell you Ed that I moved here in March 2007 straight into work (same company for 14 years). I applied to HSBC for a mortgage as a single person in July 2008 - no problems with that - then a month later asked for a Eur5K loan for furnishings - got that and the early 2009 asked for another Eur5K to re-register a foreign plated car - got that as well. All HSBC said to me was that after the monthly mortgage payments and the separate loan repayments, I need to to have a certain amount of my take home wage left over so I could 'live'. I cant remember what the percentage was, something like 40% or 50% left to survive each month.

A friend of mine recently applied to the bank as a Director of his Maltese incorporated company with full business plans and figures etc and was told to 'go away' by both HSBC and BOV - he only wanted approx Eur15K and the bank would have had the security on all of the equipment he would use the funds to purchase. They also told him he would have to have the same amount in the bank as he / his company wanted to borrow.
He then tried to get a loan personally of around Eur7K - to get him going and they told him to take a hike.
He is employed in a highly specialised job at present and earns a hell of a lot more than I do per month so Im not sure what the banks are up to these days compared to my situation a few years back.
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Postby gozomark » Thu 28 Apr 2011 16:36 GMT

Hi Terrakka - I wonder if the key was getting a mortgage ? I believe Maltese banks expect you to have a hefty deposit to get a mortgage, so you have equity in an asset you couldn't sell without the bank being aware of it - this means you are safer both in terms of less likely to leave the island leaving bills and debts unpaid, and also having assets to back up your further loans.

I can quite understand a bank being reluctant to lend money to a foreigner who is renting property, as I've heard of far too many doing a runner, and leaving debts behind. Whether its legal to discriminate like this is another matter.
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Postby wasozed » Fri 29 Apr 2011 08:24 GMT

gozomark wrote:I can quite understand a bank being reluctant to lend money to a foreigner who is renting property, as I've heard of far too many doing a runner, and leaving debts behind. Whether its legal to discriminate like this is another matter.


If its legal to discriminate in the issue of credit cards to over 65s then I guess anything is.

cheers.Ed
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