Applications for housing equity assistance schemes to open in November

Housing Minister Dr. Abdulla Muthalib has announced that applications for the 'Help to Build' and 'Help to Buy' schemes, which provide financial assistance for equity payments on home construction and purchase loans, will open next month.

Last Sunday, the Housing Ministry signed Memorandums of Understanding (MoUs) with four financial institutions to implement the equity assistance schemes under the government’s newly launched National Home Ownership Program.

In a LinkedIn post about the schemes, Minister Muththalib said the main obstacle preventing many families from owning homes is not the monthly loan repayments, but the initial equity payment required by banks to approve a loan.

The Minister referred to the ‘Maldives Affordable Housing Reform Study’, prepared for the ministry by the Affordable Housing Institute with assistance from the World Bank. The study found that more than half of the households surveyed had no savings. He also noted that fewer than one in 10 households are able to save more than MVR 3,000 per month.

To address this challenge, the Ministry has finalized agreements with four financial institutions:

• Bank of Maldives (BML)
• Maldives Islamic Bank (MIB)
• Housing Development Finance Corporation (HDFC)
• Maldives Finance Leasing Company (MFLC)

Minister Muthalib confirmed that applications for the two schemes under the National Home Ownership Program will open next month.

He urged interested applicants to begin preparing now by ensuring that all land-related documents are in order and seeking financial advice on the loans they intend to apply for.

The Housing Ministry has previously stated that the program will be available to individuals who do not own any other buildings or residential plots in their names. The land on which the house is to be constructed must also be owned by the applicant or applicants.

Although the loan must primarily be used to construct a primary residence, the Ministry has indicated that certain portions of the building may also be used for commercial purposes.