Using your pension to buy a home: the Pension Office FAQ, answered in full

The Maldives Pension Administration Office (MPAO) keeps a short FAQ on its housing collateralization programme. Below is each question, what the Pension Office says, and what it means for a buyer.

1. How does the programme work?

The Pension Office says: the service helps people "secure finance for home purchase without the need for an upfront down payment". Members use the money in their Retirement Savings Account (RSA) as collateral for the loan. In order, a member:

1. finds a home to buy;
2. secures a loan from an approved housing finance provider;
3. asks, through that provider, to pledge their pension savings;
4. the Pension Office assesses eligibility and makes the arrangements;
5. the pledged money stays invested during repayment, and the member keeps receiving returns;
6. when the loan is repaid, the money returns to the member's pension account.

What it means: you don't apply to the Pension Office directly. Your bank does it for you, as part of your loan.

2. How do I apply?

The Pension Office says: the request must go through an approved housing finance provider. You choose to pledge your RSA savings as part of your housing finance application.

What it means: tick the pension option on your bank's form and bring your RSA statement. The approved providers are Bank of Maldives, Maldives Islamic Bank, HDFC, Mauritius Commercial Bank and Commercial Bank of Maldives.

3. Who is eligible?

The Pension Office says you must:

• have enough money in the MRPS;
• not be drawing your MRPS retirement benefit;
• have secured a loan from an approved institution;
• consent to the pledge;
• be a Maldivian citizen under 60; and
• be able to repay the loan in full before you turn 65.

What it means: the last condition decides your longest possible term. At 39, a 25-year loan just fits. At 50, the loan must be paid off in under 15 years, which raises the monthly payment. Foreign residents can join the MRPS, but they cannot use it for this scheme.

4. How much of my balance can I pledge?

What it means: at 30 with MVR 250,000 saved, you can pledge all MVR 250,000. At 45 with MVR 400,000, you can pledge MVR 320,000. Your current figure is on your RSA statement and in the Pension app.

5. What happens to the money while I repay?

The Pension Office says: the pledged money stays with the housing finance provider until the loan is fully paid. Then it goes back to your RSA. You receive investment returns on it throughout.

What it means: your pension keeps growing. You just cannot touch the pledged part until the loan is cleared. The housing page adds that, depending on the lender, the money either stays invested through the MRPS or goes to the lender, who must pay returns on it at regular intervals.

6. What happens if I default?

The Pension Office says: the lender's first step is to sell the home that secures the loan. If the sale price is not enough, the balance is taken from your pledged pension.

A correction: the FAQ's English reads "if the amount received… is sufficient". The Pension Office's housing page says "insufficient", which is what the scheme means: your pension is used only for the shortfall after the home is sold.

One more correction

The housing page's step-by-step guide repeats the same slip in its fifth step. Read it as insufficient.

Pension Office: hotline 1441, Viber 733 1441, info@pension.gov.mv, pension.gov.mv. Your pledgeable amount is on your RSA statement, in the Pension mobile app and on the website.

From the Maldives Pension Administration Office's own housing pages, FAQ and leaflet, read on 18 October 2026. Your lender's terms decide the rest; confirm them before you commit. General information, not financial advice.