Govt. working to introduce equity financing for housing loans, says Pres. Muizzu

President Dr. Mohamed Muizzu said on Monday that the government is working to introduce equity financing to help citizens overcome one of the main barriers to obtaining housing loans—the requirement to provide upfront equity.

Speaking at a press conference held at the President's Office, President Muizzu said the government plans to expand the Housing Trust Fund and use it to provide equity financing within this year.

"By providing equity finance, citizens will be able to meet bank requirements to secure loans for constructing homes on their land. This will be a significant relief for many," the President remarked.

Banks typically require borrowers to contribute at least 20 percent of the total project cost as equity before approving loans for home construction.

Providing an update on the government's housing program, President Muizzu said funding has been secured for housing projects across 13 islands which were contracted late last year, with physical construction set to commence soon. He added that implementation of housing projects planned for the Malé region is expected to begin next month.

The President also noted that housing projects which had stalled at the beginning of his administration have resumed, reaffirming the government's commitment to completing the developments and enabling beneficiaries to move into their flats during the current presidential term.

"God willing, by mid-2028, a very large percentage of these works will be completed," the President said.

President Muizzu further stated that the government has introduced a range of financing mechanisms to fulfil its commitment to providing housing for all. He added that affordable housing loans were made available last year and said similar opportunities will be offered again this year as the administration continues efforts to improve access to housing.