Home Purchase Finance Equity Requirement Reduced to 5 Percent in Maldives

The equity requirement for home purchase financing in the Maldives has been reduced to 5 percent, marking a significant easing for prospective homeowners. 

Previously, Bank of Maldives (BML) applied a tiered structure starting at 20 percent equity for home loans and financing.

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This change aims to make homeownership more accessible for Maldivian families. Under the new requirement, an apartment valued at MVR 3.5 million would now require MVR 175,000 as equity, compared with MVR 700,000 under the previous system.

The adjustment follows a recent move to eliminate additional collateral requirements for housing construction finance up to MVR 3 million on any island. The bank emphasises that these steps are part of its ongoing efforts to address financial barriers for homebuyers.