BML drops home purchase financing equity to 5%

Bank of Maldives (BML) on Wednesday announced the reduction of equity requirement for its home purchase financing to 5 percent.

According to BML, this change represents a substantial reduction from the previous tiered structure starting at 20 percent equity for home loans and financing.

CEO and Managing Director of BML, Mohamed Shareef said the bank is committed to enabling more Maldivian families to achieve homeownership.

“The significant reduction in the home purchase finance equity requirement to just 5 percent addresses one of the primary financial challenges faced by prospective homeowners,” he said.

“For example, to purchase an apartment valued at MVR 3.5 million, a potential homeowner would have had to raise MVR 700,000 as 20% equity.  With today’s change, this has now reduced to MVR 175,000.”

The change comes after BML recently announced the elimination of additional collateral requirements for housing construction finance up to MVR 3 million on any island.