Following its "Guideline on the computation of debt-to-income ratio for Residential Property Loans" published in October 2013, the Bank of Mauritius has issued new guidelines regarding Home Loans which should take effect as at 1st of January 2014. These measures aim at a better regulation of banks loans for the purchase of a real estate property in Mauritius.
Due to its concerns on the increase on the level of household indebtedness and to ensure that borrowers are not over-leveraged whenever they borrow for the purchase/construction of a property, the monthly installment of a borrower should not exceed 40% of the latter’s gross monthly income.
Written By
Dany Gowsee
