Can a foreigner get a home loan in Mauritius?

Rinie Boshoff, real estate consultant for 2Futures, talks to Felicia Twala, senior relationship manager at Absa Bank Mauritius, about home loan opportunities for foreigners wanting to buy island property.

Absa Bank is one of the top five banks in South Africa. It is listed on the Johannesburg Stock Exchange. It is a Pan African bank with operations in 12 countries across the continent, and a presence in the UK and the US. Absa Bank Mauritius offers a full suite of service offerings in retail, business, and corporate and investment banking.

Home loan possibilities

Q I am often asked if a foreigner can apply for finance when they buy a home in Mauritius. Felicia, can a foreigner get a bank loan in Mauritius for a property purchase?

A Yes, we have an exciting home loan proposition for customers based in Mauritius and abroad who would love to buy property on the island and are looking to part-finance it. What’s more, we offer a full suite of services that include opening cheques, foreign currency and local rupee accounts. We also offer credit facilities in the form of credit cards, overdraft facilities and auto loans.

What about the numbers?

Q Up to what age can a foreigner secure a bank loan in Mauritius?

A Absa Bank provides finance for private individuals up to 65 years of age.

Q Do you offer 100% loans?

A We offer loans up to 70%, loan to value, based on the purchase price of the property

Q What are the interest rates?

A Absa Bank offers very competitive interest rates on Mauritian rupee loans. Interest rates change from time to time. Contact us to know more.

The application process

Q Do you offer home loans in other currencies?

A We provide finance in US dollars or euros should a client wish to purchase property in one of those currencies. Home loan propositions are tailor-made for each individual, and we will provide a pricing proposal for those.

Q What about early repayment?

A This is not a problem. We cater for clients who wish to settle their facility sooner than the contracted period. We don’t levy penalty charges.

Q Which documents must a buyer submit to apply for a bank loan?

A That depends on each individual – typically a professional or self-employed person. The first stage is to sign a loan application form. We work closely with the client from the time they make their intention known that they want to purchase a property. This is to ensure that we make the process as seamless as possible.

Q How long does the approval process take once the client submits their application documents?

A Once we have all the necessary documents, and a written offer, we can process the application within 14-21 working days. We keep the client abreast of progress throughout the process. We walk the journey with them.

In summary, foreign clients can qualify for a bank loan from Absa Mauritius, up to 70% and competitive interest rates. What’s more, they can repay their loan sooner than the contract period stipulates.

Watch the full interview: