News Desk
The Ministry of Infrastructure, Housing and Urban Development signed Memorandums of Understanding (MoUs) with four financial institutions on Monday to implement equity assistance schemes under the national home ownership initiative.
Under the agreement, Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC), and Maldives Finance Leasing Company (MFLC) joined the government’s “Help to Build” and “Help to Buy” schemes.
Minister Dr Abdulla Muththalib signed the MoUs with representatives of the financial institutions at a ceremony held on Monday.
According to the ministry, studies conducted under the Maldives Urban Development and Reconstruction Project (MUDRP) with technical assistance from the World Bank Group revealed that meeting bank equity requirements remains the biggest barrier preventing Maldivian families from constructing or purchasing homes.
The newly introduced schemes aim to remove this financial hurdle by assisting landowners unable to build due to cash constraints and first-time homebuyers entering the property market.
The program consists of two main components:
Help to Build
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Provides state assistance to landowners lacking proper shelter to secure construction bank loans across Malé and inhabited islands in the atolls (excluding Hulhumalé, Vilimálé, Gulhifalhu, and Giraavarufalhu).
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The government will provide a grant of up to MVR 200,000 towards the equity payment for a loan worth MVR 1 million.
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In Malé, where multiple family members co-own a plot of land and build together, equity assistance will be granted at MVR 200,000 per person, capped at MVR 1 million.
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For loans exceeding MVR 1 million based on floor plans and bills of quantities, government assistance remains capped at MVR 200,000 per individual.
The ministry highlighted that the assistance is a non-repayable grant. However, if the property is sold within 20 years, the funds must be repaid to the state.
Help to Buy
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Affordable Housing: Grants of up to MVR 250,000 will be provided to purchase affordable housing units valued up to MVR 1.5 million developed under Public-Private Partnerships. This runs separately from the 2024 “Hiyaavahi” scheme.
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Market Rate Units: First-time buyers purchasing commercial real estate units at market rates can also access up to MVR 250,000 in equity support.
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Funds will be disbursed directly to developers through participating financial institutions, reducing the total purchase price owed by buyers.
Eligibility is restricted to first-time land or property owners who hold no other registered housing plots or developed residential real estate in their name. The land earmarked for construction must be owned outright by the applicant or co-applicants.
While the funding is primarily intended to build primary residences, the ministry noted that recipients will be permitted to use portions of the completed building for commercial purposes.
