Getting a mortgage in Mauritius

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Investing in Mauritius has many advantages, whether you are a student, real estate investor or family relocating to this new country.

If you are a non-citizen, access to property is regulated and limited to certain areas and real estate projects. An agency specialized in the sale of such programs will be able to advise you. In some cases, the acquisition of real estate requires the financing by a banking institution that offers different loan offers. These loans are available to both Mauritians and foreigners wishing to settle and buy real estate in Mauritius. Tailor-made packages can be offered to every home loan applicant, but first and foremost there are eligibility conditions that determine what the financial institution can grant. Discover in this article everything you need to know about real estate credit in Mauritius.

Why and how to invest in Mauritius?

At a first glance, living in Mauritius is to live in a setting offering a high quality of life. Mauritius has it all to offer an idyllic living environment which attracts more and more foreigners: political and economic stability, a time zone close to Europe, modern infrastructures, access to quality private medical services, a peaceful and welcoming population, an attractive tax regime for individuals and businesses with 15% taxes, and tax incentives such as the absence of a tax on dividends (unless taxable income and dividends exceed Rs 3.5m, a tax of 5% on surplus is applicable as "solidarity tax"), free repatriation of profits, dividends and capital, no tax on capital gains, no inheritance tax, no taxes on property.

For those wishing to settle for work, the professional environment is flourishing since the unemployment rate is steadily declining (a significant decrease of 1% at the end of each quarter). For families with children, the education system is very modern and particularly accessible, with French and English schools. Educational support, access to care, student transportation and other basic needs of students is usually free (except in private schools) so as to promote an equal chance of success. Finally, on the economic level, Mauritius is in the process of becoming the destination of choice for financial exchanges and international trade and has been positioned for several years as a financial centre for trade between Asia, Europe and the African continent. All these factors and the positioning of Mauritius have boosted real estate investment on the island.

To help those who want to settle in Mauritius, financial institutions or banks can finance all or part of the acquisition, construction or renovation, for the Mauritian or foreign applicant, subject to certain conditions of course. In general, credit is obtained after a thorough study of the borrower’s file. The credit must be secured by insurance in case of death or disability, and a guarantee on the financed property will usually be requested (mortgage). Borrowing rates depend on the financial institution, the length of the loan, the criteria of the borrower’s age and level of indebtedness, and their ability to repay the loan on a monthly basis. Some administrative documents will be requested according to the reasons of your bank loan.

The conditions of eligibility to obtain a credit

To qualify for a mortgage, certain criteria are determined by financial institutions or banks. Your borrowing capacity is already a ‘sine qua non’ that will determine the maximum budget that can be granted. It cannot normally exceed 40% of your income, or even 50% if your income exceeds Rs 200,000 per month. In addition, Mauritians can obtain up to 100% of the value of the property, while non-residents can generally borrow only between 60 and 70% maximum. Secondly, the valuation of the remainder to be used for living costs (which is equal to household income minus fixed costs) is a key indicator of your standard of living and will also determine the value of your loan.

Know that even if you are a foreigner, the conditions are pretty much the same, but the funding offers are based on the income received by the applicant. The refund rate in this case will be calculated based on these amounts. The credit rate is the same for Mauritians and non-residents, and varies between 3.75% to 6.5% for loans in Rupees and 2.20% to 6.5% for loans in Euros or USD, dependent on banking institutions. The acceptance of a currency financing file will also depend on your monthly income received in the currency chosen for the loan. It is quite normal for a bank, or any institution providing loans, to ask for collateral.

It will be easier for you, whether you are a native or a foreigner, to obtain financing for your project of purchase, construction or real estate renovation by putting your property in mortgage. Once the loan is repaid in full, the mortgage on the property will be released. All that is guaranteed, and the conditions of eligibility are determined by the lending institutions, with the financing always done in the interest of the borrower so that they can carry out their reimbursements without harming their lifestyle. Although not widespread in Mauritius, there are some credit brokers who facilitate and accelerate the loan application process and prepare and submit the application file to the most appropriate banking institution.