The government has signed Memorandums of Understanding (MoUs) with four financial institutions to roll out two equity assistance schemes aimed at helping more Maldivians build or purchase their own homes under the newly introduced National Home Ownership Program.
The Housing Ministry said the agreements cover the ‘Help to Build’ and ‘Help to Buy’ schemes, which are designed to ease the financial burden on families struggling to meet the initial equity payments required to secure housing loans.
The participating institutions are the Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC), and Maldives Finance Leasing Company (MFLC).
Housing Minister Dr. Abdulla Muththalib signed the agreements on behalf of the government. The financial institutions were represented by BML CEO and Managing Director Mohamed Shareef, MIB Managing Director Mufaddal Idris Khumri, HDFC Managing Director Ahmed Zeenad, and MFLC CEO and Managing Director Ibthishama Ahmed Saeed.
According to the Ministry, research conducted under the Maldives Urban Development and Reconstruction Project (MUDRP), with technical support from the World Bank Group, identified the inability to meet banks’ equity requirements as a major obstacle preventing many families from building or buying homes.
The two schemes have been introduced to address this challenge by providing government assistance to eligible landowners seeking construction loans and individuals purchasing a home for the first time.
Under the ‘Help to Build’ scheme, the government will provide financial assistance to eligible landowners who lack adequate housing and are unable to begin construction because of financial constraints.
The scheme will cover residential islands across Malé and the atolls, excluding Hulhumalé, Villimalé, Gulhifalhu and Giraavarufalhu.
Eligible applicants can receive a government grant of up to MVR 200,000 towards the equity payment for a housing loan of MVR 1 million.
For properties in Malé jointly owned by multiple family members, assistance of MVR 200,000 per eligible person will be available, subject to a maximum of MVR 1 million. The Ministry clarified that this provision applies only to shared family land in Malé.
Even where construction costs and the building’s design require a loan exceeding MVR 1 million, the maximum assistance will remain capped at MVR 200,000 per person.
The grant will not normally need to be repaid. However, recipients will be required to reimburse the government if the property is sold within 20 years.
The ‘Help to Buy’ scheme will support first-time homebuyers purchasing both affordable housing units and properties sold at market prices.
For affordable housing, the government will provide assistance of up to MVR 250,000 towards units valued at MVR 1.5 million and developed through public-private partnerships (PPPs). The Ministry said this assistance is separate from the ‘Hiyaavehi’ scheme introduced in 2024.
First-time buyers purchasing housing units sold at market rates under real estate development projects will also be eligible for assistance of up to MVR 250,000.
Under this arrangement, the financial assistance will be transferred directly to the developer through the participating financial institution. The amount will then be deducted from the total purchase price payable by the buyer.
The Ministry stated that the schemes are intended for individuals who do not own any other developed land or property. Applicants must also legally own the land on which the proposed residential building will be constructed.
While the primary purpose of financing under the construction scheme must be residential, buildings that include some commercial use will also be permitted.
Through the two initiatives, the government aims to reduce the upfront financial burden associated with home ownership and make housing finance more accessible to Maldivians who would otherwise struggle to secure the funds needed to build or purchase a home.
