Government Partners with 4 Financial Institutions to Provide Housing Loan Equity Assistance

The Ministry of Infrastructure, Housing and Urban Development has signed agreements with four financial institutions to help people cover the down payments required for home loans.
The support comes under two schemes—"Help to Build" and "Help to Buy"—launched as part of the National Home Ownership Program. Partnering in the initiative are Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC), and Maldives Finance Leasing Company (MFLC).
Minister Dr. Abdulla Muththalib signed on behalf of the ministry, joined by BML CEO Mohamed Shareef, MIB Managing Director Mufaddal Idris Khumri, HDFC Managing Director Ahmed Zeenad, and MFLC CEO Ibtishama Ahmed Saeed.
Why the program was launched
Recent studies under the Maldives Urban Development and Reconstruction Project (MUDRP), conducted with technical help from the World Bank Group, showed that the single biggest hurdle for local families trying to build or buy a home is coming up with the equity payment banks require upfront. The new initiative is designed to remove that barrier for landowners who lack the cash to begin building, as well as first-time homebuyers.
Help to Build scheme
This scheme helps landowners without adequate housing get a bank loan to build a home. It applies to Male' and inhabited island communities across the atolls, but excludes Hulhumale', Villingili, Gulhifalhu, and Giraavarufalhu.
Key terms include:
A non-repayable grant of up to MVR 200,000 to cover the equity on a MVR 1 million loan.
For family-owned plots in Male' with multiple co-owners building together, up to MVR 200,000 per person can be granted toward the loan equity, capped at MVR 1 million in total assistance.
If the construction budget and loan amount exceed MVR 1 million based on approved drawings and bills of quantities, the government grant remains capped at MVR 200,000 per person.
The grant does not have to be repaid, provided the property is not sold within 20 years. If sold within that period, the full amount must be returned to the state.
Help to Buy scheme
This scheme supports first-time buyers purchasing a home:
Affordable housing: Up to MVR 250,000 in assistance to purchase an affordable housing unit priced at MVR 1.5 million built through public-private partnerships. This runs separately from the 2024 "Hiyaavehi" scheme.
Market-rate units: Up to MVR 250,000 in assistance for first-time buyers purchasing real estate units at open market rates.
Financial institutions will disburse the grant directly to the developer, and the amount will be deducted from the total purchase price.
Main eligibility rules
To qualify, applicants must not own any other built residential land or property registered under their name. The land being built on must be fully owned by the applicant or co-applicants. While the primary use of the building must be residential, owners are permitted to rent or use part of the building for commercial purposes.