BML reduces housing loan equity to 5 percent

Bank of Maldives (BML) has reduced the equity requirement for housing loans to 5 percent.

Previously, the equity requirement for BML’s housing finance facilities ranged from 20 percent and above. The bank described the reduction to 5 percent as a positive change.

BML CEO and Managing Director Mohamed Shareef said the bank is committed to helping people afford homes. He noted that lowering the equity requirement addresses one of the biggest financial hurdles for those seeking homeownership.

“For example, someone looking to buy a MVR 3.5 million apartment previously had to raise MVR 700,000 as 20 percent equity. With this change, that amount is now reduced to MVR 175,000,” he explained.

BML has also recently increased the maximum loan amount available for house construction and renovation to MVR 3 million.