Bank of Maldives has revised its home construction financing terms, lowering the minimum equity requirement for projects valued up to MVR 3 million to 5%, down from 20%. The change reduces the upfront contribution required from borrowers, easing one of the primary barriers to starting residential construction.
Under the revised structure, a construction project valued at MVR 2 million would now require an initial contribution of MVR 100,000, compared to MVR 400,000 previously. For projects exceeding MVR 3 million, the equity requirement remains unchanged at 20%.
The bank indicated that the adjustment is intended to improve access to housing finance and support individuals seeking to build homes, particularly those constrained by high upfront costs. It also noted that similar changes had been introduced earlier for home purchase financing, aligning lending policies across different housing segments.
In addition to the revised equity requirements, Bank of Maldives continues to offer home financing at a rate of 9%. The broader impact of the measure will depend on factors such as construction costs, access to land, and borrowers’ capacity to manage long-term repayment obligations.
