Maldives Government Signs Agreements with Four Banks to Provide Free Equity Under National Home Ownership Program

The Maldivian government has signed memorandums of understanding with four financial institutions to implement the 'Help to Build' and 'Help to Buy' schemes under the National Home Ownership Program. The agreements were signed by Minister of Housing, Land and Urban Development Dr. Abdullah Muthalib and the heads of Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC), and Maldives Finance and Leasing Company (MFLC). The schemes aim to remove financial barriers to homeownership. Under 'Help to Build', landless individuals living in Malé or atolls can receive up to 200,000 rufiyaa in free equity assistance towards a housing loan of up to 1 million rufiyaa. For joint family land in Malé, up to 200,000 rufiyaa per person may be provided, capped at 1 million rufiyaa. The 'Help to Buy' scheme offers up to 250,000 rufiyaa for purchasing affordable housing units (priced at 1.5 million rufiyaa) or market-rate units. The assistance is non-repayable unless the property is sold within 20 years. BML CEO Mohamed Sharif noted that the equity payment for housing loans has been reduced from 20% to 5%, addressing the main hurdle identified by a World Bank study. Sharif also said BML is currently working on 4,000 housing units, with 3,260 under active construction and preparations underway for an additional 740 units.