The Maldives Monetary Authority (MMA) has introduced a new initiative aimed at making home ownership more accessible for residents in the Malé area.
According to MMA, the Inclusive National Affordable Housing Scheme will enable individuals to purchase homes at affordable prices through two financing models: Lease-to-Own and End-User Financing.
Under the Lease-to-Own model, buyers can obtain housing financed by banks and will gain ownership once payments are completed according to the loan terms. The scheme carries an annual interest rate of 5 percent and does not require a mortgage, though a security deposit must be maintained throughout the lease period.
The End-User Financing model is designed for investors and developers. It provides loans to qualified developers, while homebuyers contribute 5 percent equity and pay an annual interest rate of 6 percent. The purchased property must be used as collateral.
MMA stated that only individuals with the financial capacity to make monthly rent or loan payments will qualify for the scheme.
As part of the initiative, all banks are required to allocate 10 percent of their total loan portfolios toward the program. The authority aims to fund 3,500 housing units over the next five years.
The scheme offers flexible repayment options, allowing borrowers to repay loans early, with a maximum repayment period of 25 years.