Government to Launch Two New Financing Schemes to Boost Home Ownership

The Ministry of Infrastructure, Housing and Urban Development is preparing to launch two new financing programmes designed to assist Maldivians who struggle to meet the strict financial requirements for home loans. The initiative aims to lower the barrier to entry for those who own land but lack the capital to begin construction or purchase housing units. State Minister Ahmed Nazim Mohamed explained during a PSM News interview that many citizens remain unable to build homes because they cannot satisfy the equity requirements set by commercial banks. To bridge this gap, the government will now cover the initial equity payment, enabling applicants to secure bank financing. Under the first upcoming scheme, the government will provide an equity contribution of $12,970, which will allow eligible applicants to secure loans of up to $64,851 for home construction. A second programme will target those looking to purchase flats in island-based housing projects or individual housing units, with the government providing $16,213 toward the required equity payment. The ministry is currently finalizing memoranda of understanding (MoUs) with four banks to facilitate these loans. The government expects to open applications for these schemes in November. Beyond these two programmes, the government is introducing a separate financing model for the 'Affordable Home Ownership Model.' This initiative allows citizens to purchase properties without entering the social housing scheme, specifically applying to 1,000 units currently under development in Hulhumalé Phase III and similar planned projects across the atolls. Further expanding the housing landscape, the government is partnering with the private sector to develop 550 housing units in Addu City and additional projects in Fuvahmulah. These partnerships are intended to both increase housing availability and strengthen private-sector business capacity. These efforts build upon the existing Hiyaavehi Scheme, which has already seen the disbursement of $71.3 million. The current expansion of financial assistance underscores a core government policy to ensure more Maldivians can transition from land ownership to home ownership by removing the financial bottlenecks created by traditional banking requirements.