Govt to provide up to MVR 250,000 in grants for homebuyers

The government has signed memoranda of understanding (MoUs) with four financial institutions to implement the Help to Build and Help to Buy schemes under its National Home Ownership Programme, offering grants of up to MVR 250,000 to assist Maldivians in constructing or purchasing homes.

The agreements were signed on Sunday by Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib at a ceremony attended by representatives of the participating financial institutions.

The institutions involved are Bank of Maldives (BML), Maldives Islamic Bank (MIB), Housing Development Finance Corporation (HDFC) and Maldives Finance Leasing Company (MFLC).

According to the Ministry of Construction, Housing and Infrastructure, the two schemes are intended to address the difficulties faced by households in meeting the equity contributions required by financial institutions when obtaining housing loans.

Studies conducted under the Maldives Urban Development and Reconstruction Project (MUDRP), with technical assistance from the World Bank Group, identified the inability to meet upfront equity payment requirements as one of the main obstacles preventing Maldivian families from building or purchasing homes.

The ministry said the schemes would provide financial assistance to landowners who have been unable to construct homes because of financial constraints, as well as individuals purchasing their first homes.

Under the Help to Build scheme, the government will provide equity assistance to landowners who do not have adequate residential accommodation and require bank financing to construct a home.

The scheme covers Malé and inhabited islands in the atolls, excluding Hulhumalé, Vilimalé, Gulhifalhu and Giraavarufalhu.

Eligible applicants will receive a non-repayable government grant of up to MVR 200,000 towards the equity contribution required for a housing loan of MVR 1 million.

For construction projects involving multiple owners of family-owned land in Malé, the government will provide equity assistance of MVR 200,000 per eligible owner, up to a combined maximum of MVR 1 million.

The ministry said the assistance would remain capped at MVR 200,000 per person even where the approved construction loan exceeds MVR 1 million, depending on the building plans and bill of quantities.

The assistance will not need to be repaid unless the beneficiary sells the property within 20 years of receiving the grant. In such cases, the amount provided by the government must be repaid.

The Help to Buy scheme will provide financial assistance to individuals purchasing homes, with grants of up to MVR 250,000.

Under the affordable housing component, eligible buyers purchasing housing units priced at MVR 1.5 million and developed through public-private partnerships (PPPs) will receive assistance of up to MVR 250,000.

The ministry clarified that this component is separate from the Hiyaavehi housing scheme introduced in 2024.

The scheme will also cover first-time buyers purchasing residential units sold at market prices through the real estate sector. These buyers will be eligible for government assistance of up to MVR 250,000.

Under the arrangement, the government assistance will be paid directly to the property developer through the participating financial institution.

The amount provided will be deducted from the total purchase price payable by the buyer, reducing the buyer's upfront financial commitment.

Eligibility requirements

The ministry said assistance under the programme would be available to applicants who do not own another developed residential property or plot of land registered in their name.

For the Help to Build scheme, the land on which the property is to be constructed must be owned by the applicant or applicants.

Although the assistance is primarily intended to support the construction of residential accommodation, beneficiaries will be permitted to use part of the completed building for commercial purposes.

The government said the schemes form part of its National Home Ownership Programme, which seeks to increase access to home ownership by reducing the financial barriers associated with construction loans and property purchases.

The agreements with the four financial institutions establish the framework for implementing the schemes and providing the government-funded equity assistance to eligible applicants.