The Government is preparing to roll out two new housing financing programmes aimed at helping individuals who face financial barriers to constructing or purchasing a home, according to the Ministry of Infrastructure, Housing and Urban Development.
Speaking on PSM News’ Raajje Miadhu programme, State Minister for Infrastructure, Housing and Urban Development Ahmed Nazim Mohamed said a significant number of people continue to struggle to build homes because they do not meet the eligibility requirements set by banks for housing loans.
To address some of these challenges, the Government previously introduced the Hiyaavehi Scheme, which attracted a large number of applications. A total of USD 71.3 million has since been allocated for disbursement under the scheme.
The State Minister said the Government is now working with banks to introduce two additional financing programmes to make home construction and ownership more accessible.
Under one of the planned schemes, financial assistance will be provided to people who already own land but are unable to begin construction because they cannot meet the equity contribution required by banks. The Government will cover the required equity payment, enabling eligible applicants to secure a housing loan from a participating bank.
Nazim said an equity contribution of USD 12,970 provided under the programme would enable an applicant to obtain financing of up to USD 64,851. The Government is aiming to launch the scheme within the next two months.
The second programme will target people who cannot afford the equity contribution needed to purchase flats being developed under housing projects in the islands or to acquire a housing unit. Under this initiative, the Government plans to provide USD 16,213 towards the required equity payment.
The ministry is currently working to sign memoranda of understanding (MoUs) with four banks to facilitate the financing arrangements, with the Government targeting November for the opening of applications.
In addition to these two programmes, the Government is preparing a separate financing facility for people seeking to purchase homes under its Affordable Home Ownership Model. The scheme is intended to provide financial support to prospective homeowners without requiring them to enter the social housing scheme.
The financing facility will cover the 1,000 housing units currently being developed in Hulhumalé Phase III, as well as future Affordable Home Ownership Model projects planned for the atolls.
The Government is also collaborating with the private sector on a 550-unit housing development in Addu City, along with another housing project in Fuvahmulah. The ministry said these initiatives are also part of broader efforts to strengthen and support private-sector businesses.
Helping landowners overcome financial obstacles to building their own homes, while expanding opportunities for people to become homeowners, remains a key housing policy of the Government.
