The national bank, Bank of Maldives has announced significant enhancements to its housing financing products to offer greater flexibility and accessibility for customers across the Maldives.
Speaking on the enhancements at a press conference, BML’s Retail Banking Director Badhruddeen said the changes are aimed at ensuring housing for the public and facilitating the construction of houses. With these changes, the monthly loan repayments will be lower, and the economic growth is expected to see a significant progress.
“The changes include an increase in the financing amount. It will ensure the availability of funds required for the project. While loans up to USD 64,850 were issued to build homes in some islands, the amount has now increased to USD 129,700,” he explained.
Speaking at the press conference, BML Islamic’s Mariyam Shiraany further explained regarding the new changes. Although loans were previously issued to purchase apartments, row houses or single units, the loans now cover land and the purchase of parking spaces.
Shiraany added that down payments for loans have also seen changes. She provided an example stating that if an individual who wishes to purchase a property with USD 195,000, the equity to qualify for the loan will now be decreased by ten percent.
“If purchasing a property for USD 195,000, only a ten percent down payment is required to borrow the loan. If the cost is between USD 195,000 and USD 324,254, the equity is revised to 15 percent. If above this threshold, 20 percent equity is required. Therefore, with these changes, the USD 39,000 down payment required to purchase the USD 324,254 will now decrease to USD 19,455,” she explained.
Shiraany said funds collected under retirement pension schemes can be used for down payment, as a joint payment between multiple borrowers. Meanwhile, the repayment period for home construction loans have been extended from 15 to 20 years, with maximum financing amount available increased from USD 972,000 to USD 2.9 million. Additionally, the maximum financing amount under home build financing has been increased to USD 129,700, with income requirement reduced to offer access to more customers.