Bank of Maldives on Tuesday signed an agreement with the Maldives Pension Administration Office to accept retirement savings as equity for home loans. The bank says the agreement will pave the way to make home finance more accessible and more affordable for Maldivian individuals and families who, until now, have found it difficult to meet the initial equity down payment required.
BML Home Loan applicants will now be able to use funds accumulated in their Retirement Savings Account (RSA) to meet the required 20% equity contribution.
According to the bank, these funds will be collateralized and held by MPAO for the duration of the loan, and if the amount available is not sufficient, applicants can top it up through their own contribution. Families will have the option of pooling together their RSAs when applying for a Home Loan.
Commenting on this scheme, BML CEO and Managing Director Andrew Healy said “one of the biggest obstacles home buyers face is not having enough savings to meet the required equity contribution and today’s initiative with MPAO represents a sensible solution.”