# 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.

Source: Maldives Real Estate News, published by Binga Properties. URL: https://news.binga.mv/bml-home-construction-financing-and-hiyaavehi
Published: 2026-10-18T07:27:31.990Z · Updated: 2026-10-18T07:27:31.990Z · Event date: 2026-10-18

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.*

## Sources
- www.bankofmaldives.com.mv/personal/financing/home-construction-financing (BML Home Construction Financing page, read 18 October 2026) (https://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) (https://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) (https://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) (https://atolltimes.mv/post/business/10241 (Atoll Times, 24 October 2024: Hiyaavehi memorandum))

Binga Properties is a real-estate concierge; it may represent homes and developments mentioned here.