Navigating property financing in Mauritius can be a daunting task for potential clients, especially those unfamiliar with the local market. Questions often arise regarding the extent to which properties can be financed and whether mortgages can be obtained from local institutions.
For non-Mauritian citizens eyeing property investments under qualifying schemes, the good news is that they do qualify for mortgages up to 70% of the purchase price. These mortgages typically come with terms of up to 10 years when denominated in US Dollars or Euros, and up to 30 years when in Rupees. However, applicants must ensure they are no older than 65 years at the term’s end.
Mortgage options come in both hard currency, such as Euros and Dollars, as well as in local Rupees. Interest rates for Dollar and Euro mortgages are risk-dependent, but generally fall between 7% and 9%, while Rupee loans typically range between 5% and 6%. Some banks even offer clients the flexibility of making balloon or residual payments at the end of the term to lower monthly repayments.
An intriguing opportunity exists for existing property owners: properties already paid for in Mauritius can be refinanced up to 60% of their value. This includes properties held under trusts or other structures. Given the considerable appreciation many properties have seen, and comparatively low local interest rates, this presents a cost-effective means for owners to expand their real-estate portfolios.
Understanding these financing options is essential for anyone considering property investment in Mauritius. With the right knowledge and guidance, navigating the market can lead to lucrative opportunities for investors.
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