Buying off plan with MFLC: the questions to ask first

Most new homes in Greater Malé are sold before they are built. The big banks publish lists of developments they will finance before completion. Maldives Finance and Leasing Company (MFLC) does not publish such a list, and we found no announced MFLC partnership with any developer. That does not mean it will not finance an off-plan purchase. It means you need to ask.

What MFLC's terms already tell you

• Payment to the developer: its Islamic home financing form says funds may be paid to the customer, supplier, developer or contractor, as agreed with MFLC.
• A grace period of 3 to 12 months. That is shorter than the 24 months some banks offer, and short against a two-year build.
• A commitment fee of 1% a year on approved money not yet drawn. If MFLC pays the developer in stages, the undrawn balance carries this fee.
• Security: the property being financed. For a flat not yet built, ask what MFLC takes as security until it exists.

Seven questions to ask MFLC

1. Will you finance this development before completion? Ask for it in writing.
2. How will the money be paid: in stages against the developer's schedule, or at handover?
3. What do I pay during construction, and does the grace period cover the whole build?
4. Is the commitment fee charged on stages not yet paid?
5. What security do you take before the flat is complete?
6. What happens if handover is late?
7. What is the rate, and is it fixed for the term?

And ask the developer

• Which lenders have approved the development? Bank of Maldives, for example, lists more than 30 approved projects.
• How does their payment schedule line up with your lender's disbursements?

Compare the answers with a bank that has approved the development before you pay any booking fee.

As published by MFLC on 18 October 2026. MFLC does not publish its rates; ask for them in writing. General information, not financial advice.