# How Bank of Maldives' home financing changed, 2021 to 2026 > In five years Bank of Maldives cut its home rate to 9%, stretched terms to 25 years, cut the deposit from 20% to 5%, added dollar financing at 7.5%, took on the government's 5% building scheme and turned its personal banking Islamic. The changes in order, and what they add up to for buyers. Source: Maldives Real Estate News, published by Binga Properties. URL: https://news.binga.mv/bml-home-financing-timeline-2021-2026 Published: 2026-10-18T07:27:31.990Z · Updated: 2026-10-18T07:27:31.990Z · Event date: 2026-10-18 Five years ago, buying a flat with a Bank of Maldives (BML) loan meant 20% down and up to 20 years. Today it means 5% down, 25 years, and an Islamic contract. Here is how it changed. ## The timeline - **December 2021: the rate falls to 9%.** For new applicants and for refinancing from other lenders, on apartments and row houses anywhere in the Maldives. BML has held 9% since. - **August 2023: 25 years and a 24-month grace period.** The term grew to 25 years and the grace period to 24 months, still at 9% and 20% equity. - **May 2024: two loans for existing owners.** - A Home Build Loan: up to MVR 1 million without extra security, over more than 15 years. - A Home Equity Loan: borrow against what you have repaid, from MVR 50,000, over 20 years at 10%. - **February 2025: a wider product.** - Financing now covers land, garages and parking. - Equity down to 10% for projects up to MVR 3 million. - Terms extended, and the ceiling raised from MVR 15 million to MVR 45 million. - Income from the project considered for construction, and the income requirement eased. - **1 October 2025: 5% down.** Home Purchase Financing equity cut to 5%. On a MVR 3.5 million flat, MVR 175,000 instead of MVR 700,000. - **October 2025: Hiyaavehi.** BML began approving the government's subsidised building scheme: 5% over 25 years, the building itself the only collateral. - **November 2025: affordable housing.** Land agreed for about 3,000 lease-to-own homes under the MMA's affordable housing rule, built through a new BML subsidiary. Construction began in January 2026. - **8 April 2026: 5% down to build.** Construction financing equity cut to 5% for projects up to MVR 3 million. - **23 April 2026: 7.5% in dollars.** Home financing for tourism workers and other USD earners, repaid in dollars. - **13 September 2026: Islamic first.** All new personal financing processed on Islamic principles. Home financing is now Diminishing Musharakah, with conventional banking available on request. ## What it adds up to For a buyer of a new flat in Greater Malé, the barriers have moved: - The **deposit** is now small: 5%. - The **term** is long: 25 years. - A **grace period** covers the build. What decides whether you can buy is now mostly your **monthly income**: about MVR 8,400 a month for every MVR 1 million financed at 9% over 25 years. The rate has not moved in five years. If BML's base rate changes, so may yours. Ask how your rate is set before you sign. *General information, not financial advice.* ## Sources - raajje.mv/110599 (raajje.mv, 8 December 2021: home loan rate cut to 9% from 1 December 2021) (https://raajje.mv/110599 (raajje.mv, 8 December 2021: home loan rate cut to 9% from 1 December 2021)) - atolltimes.mv/post/business/4855 (Atoll Times, 1 August 2023: 25-year tenor, 24-month grace) (https://atolltimes.mv/post/business/4855 (Atoll Times, 1 August 2023: 25-year tenor, 24-month grace)) - www.bankofmaldives.com.mv/articles/685/bank-of-maldives-announces-new-housing-loans-and-financing (BML, 6 May 2024) (https://www.bankofmaldives.com.mv/articles/685/bank-of-maldives-announces-new-housing-loans-and-financing (BML, 6 May 2024)) - www.bankofmaldives.com.mv/articles/743/bank-of-maldives-announces-positive-changes-to-housing-finance-products (BML, 10 February 2025) (https://www.bankofmaldives.com.mv/articles/743/bank-of-maldives-announces-positive-changes-to-housing-finance-products (BML, 10 February 2025)) - www.bankofmaldives.com.mv/articles/833/bank-of-maldives-announces-lowest-home-purchase-financing-equity-at-5 (BML, 1 October 2025) (https://www.bankofmaldives.com.mv/articles/833/bank-of-maldives-announces-lowest-home-purchase-financing-equity-at-5 (BML, 1 October 2025)) - 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)) - 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/915/bank-of-maldives-introduces-new-home-financing-for-tourism-sector-employees (BML, 23 April 2026) (https://www.bankofmaldives.com.mv/articles/915/bank-of-maldives-introduces-new-home-financing-for-tourism-sector-employees (BML, 23 April 2026)) - www.bankofmaldives.com.mv/articles/954/bml-to-transition-personal-banking-accounts-and-financing-to-shariah-compliant-services (BML, 13 September 2026) (https://www.bankofmaldives.com.mv/articles/954/bml-to-transition-personal-banking-accounts-and-financing-to-shariah-compliant-services (BML, 13 September 2026)) Binga Properties is a real-estate concierge; it may represent homes and developments mentioned here.