Bank of Maldives (BML) has made significant changes to its housing financing facilities.
Bank of Maldives (BML) has made significant changes to its housing financing facilities.
At a press conference held at the BML Islamic Office, the bank's Director of Retail Banking and Cards, Badruddeen Hassan, said these changes were made to help ensure housing for customers.
"With these changes, there will be greater opportunities for housing construction and renovation than before. This will lead to the creation of more companies in the construction sector and will indirectly bring positive economic changes," he said.
Under the new changes to housing financing, BML will now finance the purchase of land and parking spaces. Previously, the facility only covered apartments, single units, and row houses.
Starting today, the down payment requirements for financing facilities have been reduced. Loans up to MVR 3 million can be obtained with a 10 percent down payment. Additionally, loans between 3 million and 5 million will require a 15 percent down payment, and loans above MVR 5 million will require a 20 percent down payment.
Retirement Pension Scheme funds can be used for the down payment of these loans.
Under these changes, the repayment period for construction financing facilities has been extended from 15 to 20 years. This will result in lower monthly payments.
Previously, income-generating properties required real estate financing. With today's changes, home construction financing will be available. Additionally, home-build financing can now be obtained without additional collateral.
While previously a monthly income of MVR 26,000 was required for a MVR 1 million home housing loan, with the new changes, a combined income of MVR 22,000 from two or three people will now qualify for the loan.
BML noted that these are the lowest-rate housing loans offered to make things easier for customers.
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