REAL ESTATE INVESTMENT 2021
What safeguards regulate home loans in Mauritius ?
The provision of home loans by banks is regulated by the Borrower Protection Act 2007 and by guidelines issued by the Bank of Mauritius , which sets out prudential regulations . Within these limits , different banks can easily finance the acquisition of a property through their exclusive offers . In cases of VEFA , the bank will be all the more willing to grant financing if a reputable financial institution ( itself or another bank ) has granted the Financial Guarantee of Completion beforehand , at the request of the property developer .
How is the loan disbursed ?
The loan will only be disbursed after the personal contribution has been made and according to a pre-established schedule , which itself depends on the progress of the work .
The GFA will be established before the loan is disbursed . The funds will be disbursed gradually and only the interest is payable monthly until the loan is paid in full . In terms of maturity , interest is payable monthly and it is possible to opt for monthly , quarterly , biannual or annual repayment of the capital .
Required guarantees by the MCB from the buyer :
• First-priority mortgage on the property to be acquired
• Funds or bonds deposited as security
• Bank guarantee from an international bank
• A Death and Disability ( D & D ) insurance policy with a recognised insurance company delegated to MCB Ltd
• A Household Multi-risk ( HMA ) policy managed in favour of MCB Ltd
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