1. Searching for the Apartment

• Serval factors need to be considered when buying an apartment, most importantly you need to be clear on your requirements and expectations. Things you need to consider may include, your current family size and your plans for future family size, location convenience, etc. Since you need to make the right decision, you will need to have a good research and get a proper feel for the apartment and its location.
• Affordability is also an important factor to consider in buying apartments. Daily, monthly and annual expenditure should be considered when checking your own credit worthiness in comparison to the EMI of the loan.
• You can get details of the various developments in the property market in one platform via property.hdc.com.mv. Also, there are several other sources such as the individual websites of the developments and other promotional tools used by the developers.

2. Securing the Apartment

• If you are planning to buy an apartment, you have several options to consider from. Such as Full payment and loan;
  • Booking fee
    • A pre-booking fee (up to MVR. 50,000.00 approximately) as maximum to the seller, in order to secure the apartment.
  • Full payment
    • Paying the full price as a one-off payment to the seller.
  • However, prior to making any payments besides the booking fee (up to MVR. 50,000.00 approximately) to an apartment in Hulhumalé, you should ensure that the developer is authorized by HDC to make pre-sale of the development.
  • The sale authorization will be granted once the developer achieves 20% of construction works.

3. Purchasing the Apartment and Checking Your Credit Score

• Housing loan products offered by different banks and financial institutions may vary, however, the following are some general indications of key terms and conditions of a housing loan:
  1. Commercial housing Loans*
     • Loan Amount: More than MVR 1 Million
     • Interest Rate: 10% to 12%
     • Repayment Period up to 20 years
     • Equity: 20% of apartment price
       • Equity can be paid either to the seller or bank. If the equity is paid to the seller, the buyer shall submit a letter issued by the seller, to the bank confirming the payment.
       • The buyer can collateralize savings at pension fund to finance equity contribution for bank loans
     • Customers can apply jointly with a member of their immediate family (i.e., parents, spouse, and children)
  2. Affordable Housing
     • Loan Amount: Below MVR 2.2 Million
     • Interest Rate: 5%-6%
     • Repayment period up to 20 years
     • Equity: 5% to 20%
       • For affordable loans, you can borrow the equity amount from a bank or Financial Institution
       • Can collateralize savings at pension fund to finance Equity contribution
     • Customers can apply jointly with a member of their immediate family (i.e., parents, spouse, and children)

- The banks would prefer customers with low credit risk, who would not default on the loan re-payments.

- Different banks may have varying credit scoring systems, and the banks in general may assess the following details for your eligibility to a housing loan.

• • • Your credit history, other loan obligations, past defaults, etc.
    • Your financial stability, work background, job history and salary details, details of other incomes (if applicable), etc.
    • Banks may allow you to pool income of the immediate family members who earn an income.
    • Generally, banks require the monthly EMI of the loan to be about 40% to 50% of the pooled income.

- You may check your monthly EMI through EMI calculator

- Most banks offer both conventional loans and shariah-complaint loans according to your preference.

- The banks will issue an offer letter if you are eligible for the particular loan.

4. Signing of the Sales and Purchase (S&P) agreement and pay the down payment

• Upon receiving the loan offer letter from the bank, you can sign a Sales and Purchase Agreement with the seller and make the equity / down payment to the seller.

5. Get the loan confirmation letter and sign the quadripartite agreement

• Once you submit a copy of the sales and purchase agreement, the bank will issue a loan confirmation letter.
• At this stage the buyer, seller, bank, and Housing Development Corporation will sign a quadripartite agreement.

6. Getting your keys and title registration

• Upon completion of the development project a Building Usage Permit will be issued to each apartment separately.
• Prior to issuing Building Usage Permits, a physical survey will be done of the apartments to check the completion as per the guidelines and approved drawings.
• The apartment key will be handed over upon disbursement of funds from bank

What to consider when buying a home.

Buying a home can be a lengthy and complex process given your individual preferences and affordability.

The objective of this guide is to help you understand the key features to consider when buying a home and to assist you in making a well informed decision.

1. Purchase Price

First and foremost, affordability! Buying a home is a huge investment. The purchase price; price range and loan payments, affects your financial stability, and are crucial in planning to purchase a new home.

2. Location of the Home

Accesibility is the key! Accesibility to the essential needs such as work, schools, hospitals etc. saves time and the trouble of unreasonably long commutes. It is also worth considering the accessibility to recreational areas such as parks and playgrounds, especially for a family with kids. 

However, do note that prime locations with such communal developments tend to have a higher price. 

3. Home Layout

The layout of your home is one of the major factors to think about when purchasing a home. Family size, future family plans and given our culture; space to accomodate family/social gatherings are key factors as well. Having an extra room can be utilized for several needs such as maid room, kids room, guest room and storage or workspace.

Some homes are designed with different concepts, which are suitable for specific family preferences. For example, layouts with common toilets are more suitable for a nuclear family with kids. On the other hand, couples living with extended family would prefer attached toilets.

A common layout would have a spacious toilet with the Master bedroom, while the remaining rooms are with standard, common or attached toilets.

4. Age of the Building

When searching for the most suitable home which best suites your needs, you will come across those which are pre-owned. These are better in terms of affordability, however, may require additional maintenance costs prior to moving in.

5. Building Amenities and Facilities

Most apartment complexes and condominiums are designed and built with in-house facilities and amenities for the convenience of the residents. This is a significant factor to consider as these are the facilities which are the closest to your home. Most developments offer retail spaces in ground and first floors , which usually accomodate convenience stores and ATMS. In addition to this, such residential buildings also house fitness centers, designated kids play areas and even swimming pools. Dedicated parking spaces and 24hr security provisions are also available in almost all developments.