Rules & rates
Building rather than buying: Bank of Maldives' construction financing and the 5% Hiyaavehi scheme
If you own land, building can cost less than buying from a developer. Bank of Maldives finances construction from 9.5% with 5% equity on projects up to MVR 3 million, and runs the government's Hiyaavehi scheme at 5%. How the two compare with buying a finished flat.
Most buyers in Greater Malé buy from a developer. Families who own land, or whose parents do, have another route: build. Bank of Maldives (BML) finances that in two ways.
Home Construction Financing
BML's Shariah-compliant construction financing, on Diminishing Musharakah:
- Amounts: from MVR 50,000 up to MVR 45 million.
- Term: up to 25 years, with a grace period of up to 24 months.
- Who: you must own the land, or be the child or parent of the landowner. Joint applicants are welcome if at least one is legally connected to the property.
- Rates by equity:
| Financing | Your equity | Rate |
|---|---|---|
| Up to MVR 3 million | 5% | 9.5% |
| Above MVR 3 million | 20% | 10.5% |
| Above MVR 3 million | 35% | 10.25% |
| Above MVR 3 million | 50% | 10% |
- Security: up to MVR 3 million, collateral equal to 100% of the cost or bill of quantities; above that, the property must cover 150% of the financing.
- Rent counts: unlike home purchase financing, rental income from the building you are constructing is considered when BML assesses your income.
- Fees: MVR 1,000 to apply and 1.5% processing.
The equity for projects up to MVR 3 million fell from 20% to 5% on 8 April 2026. BML's example: a MVR 2 million build now needs MVR 100,000 of your own money instead of MVR 400,000.
The Hiyaavehi scheme
Hiyaavehi is the government-subsidised scheme for building homes. It is offered through BML and, under similar agreements, other lenders. BML began approving projects in October 2025, with more than 1,400 applications under review.
- Rate: 5% a year, the lowest in the market.
- 25 years, with an 18-month grace period.
- 20% equity, which the customer or the government can contribute.
- The building under construction is the only collateral.
Applicants can track their status at gedhoruverin.gov.mv.
Building or buying?
- Building suits families with land in Malé, Villimalé or the islands, a long horizon, and time to manage a contractor. It can earn rent from extra floors, and BML counts that rent.
- Buying from a developer suits those without land, or who want a finished building with shared facilities and a fixed handover date. BML's Home Purchase Financing is at 9% with 5% equity.
Terms as published by Bank of Maldives. General information, not financial advice.
Compare building and buying with the concierge
Sources and method
- www.bankofmaldives.com.mv/personal/financing/home-construction-financing (BML Home Construction Financing page, read 18 October 2026)
- www.bankofmaldives.com.mv/articles/911/bank-of-maldives-reduces-home-construction-financing-equity-to-5 (BML, 8 April 2026)
- www.bankofmaldives.com.mv/articles/837/bank-of-maldives-begins-approval-for-hiyaavehi-scheme-housing-projects (BML, 9 October 2025)
- atolltimes.mv/post/business/10241 (Atoll Times, 24 October 2024: Hiyaavehi memorandum)
Prices are asking prices as listed through Binga unless marked achieved, and are dated. Developer descriptions are reported as the developer's own. Facts the desk could not verify are left out. Spotted an error? Write to hello@binga.mv; corrections are noted at the foot of the piece.
Binga Properties is a real-estate concierge; it may represent homes and developments mentioned here.
