ALL ABOUT HOME LOANS brought to you by Bank One
In terms of current Mauritian legislation :
financial institutions have to ensure that a potential borrower ’ s DTI does not exceed
50 %
The DTI , i . e . “ debt-to-income ” ratio which compares how much you owe each month : to how much you earn , is a critical part of the eligibility process
TOP TIP
Be realistic and honest about how you will fit a loan repayment into your current budget . Consult a professional financial advisor , or enquire whether your bank offers such a service , to analyse your financial situation and guide you in determining the value of the property you will be able to afford .
LOOKING FOR A PROFESSIONAL TO GUIDE YOU ?
Real estate agencies play a critical role in the property acquisition process ; as one of the expert providers in the process , it is part of their service to understand your requirements , and advise and guide you as you search for your ideal property .
• As the intermediary between seller and buyer , they have the challenging job of facilitating agreement between the parties .
• It ’ s therefore important that you ’ re confident with the advice they provide and satisfied with their representation of your position .
Until recently the real estate agency sector in Mauritius was wholly unsupervised , which meant that anyone could act as an agent and consequently be paid the commission fee . With the recent introduction of the Real Estate Agent Authority Act 2020 , the business activities of real estate agents :
• will be closely regulated and controlled , and
• the interests of those engaged in transactions with agencies will be protected .
• The average buyer ’ s commission is around 2 %.
TOP TIP
Keep an eye on local publications where real estate is advertised and promoted , explore generic real estate portals and individual estate agents ’ websites , and sign up for their email alerts . And look out for roadside billboards / signage promoting new developments , offerings , and products – that could be where you hear about your dream home first !
4