MMA Launches Inclusive Housing Scheme to Make Home Ownership More Affordable in Greater Malé

The Maldives Monetary Authority (MMA) has announced the introduction of a new nationwide affordable housing financing initiative, the Inclusive National Affordable Housing Scheme, aimed at expanding home ownership opportunities in the Greater Malé Area through the country’s banking system.

Under the newly issued regulation, all commercial banks in the Maldives are required to allocate between 10% and 15% of their total loan portfolio to this housing scheme. The program will run for five years, during which the central bank expects to finance approximately 3,500 housing units. Financing under the scheme will be repayable within 25 years, though recipients may opt for shorter repayment periods if desired.

According to the MMA, the initiative reflects the Authority’s ongoing commitment to financial inclusion, ensuring that the financial sector supports broader social needs such as affordable housing. “Expanding financial access and providing appropriate affordable financing will have a positive impact on both the financial system and the country’s social and urban development,” the central bank said in a statement.

The scheme offers two main financing models tailored to different housing needs and ownership pathways:

Type A – Lease Ending with Ownership:
Under this model, homes will be constructed through developers financed by participating banks. Qualified individuals can lease these properties for a specified period under a 5% annual profit rate. Upon completion of payments, ownership of the property will be transferred to the resident. No collateral or equity contribution is required, though a security deposit may be requested during the lease period.

 Type B – End-User Financing:

This option allows eligible individuals to purchase homes directly from approved developers or investors. Financing will be offered at a 6% annual profit rate, with buyers contributing 5% equity. No additional collateral is required beyond the purchased property. The pricing, terms, and duration of this financing will be determined in accordance with MMA’s directives.

To ensure fairness and accessibility, the MMA has stipulated that the financing facilities will only be available for approved housing projects and to first-time homeowners. Applicants must also demonstrate the ability to meet monthly repayment obligations under the scheme.

MMA stated that the new initiative builds on the success of previous housing programs launched through local banks, including the Arabiyya and Gaakoshi flat projects in 2017, which enabled many Maldivians to acquire homes at affordable prices.

By mandating active participation from banks and prioritizing equitable access, the Inclusive National Affordable Housing Scheme marks a significant step in aligning the Maldives’ financial system with national development priorities—enhancing social wellbeing and strengthening economic inclusion across the nation.