[Magazine article of LexpressProperty 71 (October - November)]
Can someone apply for a home loan even when retired? Although many institutions tend to decline loan applications from our senior citizens due to their advanced age, the Mauritius Housing Company Ltd (MHC) is now offering the Senior Smart Loan scheme.
This initiative allows Mauritians and Rodriguans aged between 60 and 70 to buy, extend or renovate a house, or to refinance a housing loan. The loan, which is meant to be tailor-made, ranges from Rs 50,000 to Rs 1 million with applicable conditions and without the insurance, which is usually required for a home loan.
Thus, the ’Senior Smart Loan’ will not require an insurance policy or a PEL (Plan Epargne Logement) account at MHC. The potential beneficiary can be a person with or without a salary.
However, a medical certificate will be required to determine the person’s state of health to ensure eligibility. He or she must be between 60 and 70 years of age and receive a state pension or a retirement pension.
Interest rate of 5.85% (variable)
This home loan is available for the purchase of land, the construction or renovation of a house or the refinancing of an existing home loan. The repayment period is extended to ten years with an interest rate of 5.85% per annum (variable with the Reporate).
This new scheme is now made possible as the old-age pension has increased considerably from Rs 3,500 to Rs 9,000 in recent years, and in some cases even to Rs 11,000. This allows for an easy settlement of the monthly payments. Should the borrower be unable to prepay, the heir is responsible for repaying the remaining amount.
Applications can be made at any of the MHC offices in Port Louis, Curepipe, Flacq, Moka, Triolet, Goodlands, Bambous, Rose- Belle, Chemin Grenier and Rodrigues.
