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During a press conference on the 22 March 2019, the Minister for Finance, Edward Scicluna, announced that regulations on equity release financial products have been drafted and will soon be issued.

The regulations cover equity release financial products to be provided by credit or financial institutions who are licensed by the MFSA. In a nutshell, the equity release financial product will be aimed at pension-age citizens who can take out a loan which will be repaid from the future sale of the borrower’s residence.

The voluntary scheme will enable pensioners to make use of the value of their property without the need of selling it. The credit or financial institution will recoup its money once the borrower has passed away or chooses to move into long term care. Once the credit or financial institution is paid, any balance from the sale of the property is passed on to the heirs.

Under this scheme, owners may utilise up to 60% of the value of the property.

This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact