Bank of Maldives (BML) has unveiled a major policy shift to make homeownership more accessible, announcing that customers will now need to contribute just 5% equity for Home Purchase Financing.
This marks a sharp reduction from the bank’s previous tiered system, which required a minimum 20% equity contribution. The move is expected to significantly ease financial barriers for Maldivian families aspiring to own homes.
Mohamed Shareef, CEO and Managing Director of BML, described the policy change as a milestone in housing finance.
“We are committed to enabling more Maldivian families to achieve homeownership. The significant reduction in the Home Purchase Finance equity requirement to just 5% addresses one of the primary financial challenges faced by prospective homeowners” he said.
To illustrate the impact, Shareef explained that under the previous structure, purchasing an apartment valued at MVR 3.5 million required a buyer to raise MVR 700,000 in equity. With the new rule, the upfront equity falls to MVR 175,000—dramatically lowering entry costs for prospective buyers.
The announcement builds on BML’s broader efforts to support the housing sector. Earlier this year, the bank eliminated additional collateral requirements for housing construction financing up to MVR 3 million on any island, further expanding access to credit.
The initiative comes at a time of rising demand for affordable housing across the Maldives, particularly in the Greater Malé area where property prices continue to climb. Analysts note that by reducing upfront costs, BML is likely to see increased loan uptake, which could stimulate both the housing market and the wider construction sector.
With this latest change, BML has positioned itself as the market leader in affordable home financing, setting a new benchmark for the industry.
