Financing Your House
Get your financing settled before you finalise plans with your architect. The budget determines the design, not the other way around.
1. Know Your Real Budget
Your total project cost is not just the construction cost. Budget for:
| Category | Includes |
|---|---|
| Land | Purchase, notary, registration duty, survey, soil test — see Buying the Land |
| Professional fees | Architect, structural engineer, quantity surveyor — see Architect |
| Permits | BLP fees, clearances — see Building and Land Use Permit (BLP) |
| Construction | Structure, roof, walls, screed, plaster — see The Construction Phases |
| Utilities connection | CEB, CWA, WMA, fibre — see CEB — Electricity, CWA — Water, WMA — Wastewater, Internet and Telephone |
| Finishes | Tiles, doors, windows, paint, kitchen, sanitary ware |
| Insurance | Contractor All Risks during build, fire/home insurance after |
| Boundary wall, gate, driveway, landscaping | Almost always forgotten in the first budget |
| Contingency | 10–15% of the construction cost. Non-negotiable. |
2. Home Loan Pre-Approval
Get a pre-approval (letter of intent) from a bank before committing to land or plans. It tells you what you can actually borrow.
What banks typically look at:
- Your net monthly income and existing debt (debt-service ratio)
- Employment stability
- The land title (the land usually becomes the security)
- The approved architectural plans and a costed estimate or BOQ
Documents commonly required:
- National Identity Card
- Payslips (typically last 3 months) and employer's letter
- Bank statements (typically last 6 months)
- Statement of Emoluments / tax returns
- Title deed of the land
- Approved plans, BLP, and contractor's quotation or BOQ
- Exact requirements vary by bank — VERIFY with each lender
3. Compare Lenders — Do Not Take the First Offer
Ask every bank for the same things in writing so you can compare like with like:
A 0.5% rate difference over 20 years is a large sum. Negotiate — banks in Mauritius do compete on housing loans.
4. Construction Loans Are Released in Tranches
For a self-build, a bank does not hand over the full amount at once. It releases funds in tranches tied to construction milestones (foundation, slab, roof, finishes), usually after a bank valuer or your architect certifies the stage is complete.
Consequences you must plan for:
- You will need cash upfront for the first stage before the first tranche arrives.
- Your contractor's payment schedule must match the bank's tranche schedule. Align these in writing before signing anything — see Choosing a Contractor.
- Each valuation visit may carry a fee.
5. Government Schemes and Refunds
Several schemes can return significant money to you — but most have conditions you must satisfy before or during the build, not after. Read Government Schemes, Refunds and Grants before your architect finalises the plans, because floor area and property value limits affect eligibility.
As checked on 27 July 2026 — see Government Schemes, Refunds and Grants for the detail and sources:
| Scheme | Status | Benefit |
|---|---|---|
| Housing Loan Relief Scheme | ✅ Open to June 2027 | Rs 667/month, falling to Rs 333/month |
| Roof slab / building materials grant | ✅ Open, income-tested | up to Rs 100,000 |
| First-time buyer registration duty exemption | ⚠️ verify ceiling | 5% of first Rs 5m |
| VAT refund on residential building | ❌ Closed to new construction | — |
| Home Ownership Refund Scheme | ⚠️ likely expired | — |
| Home Loan Payment Scheme | ⚠️ likely expired | — |
🚨 Do not budget for the VAT refund on a house you are starting now. The qualifying construction window ended 30 June 2025. Plenty of advice online still tells Mauritians to expect up to Rs 300,000 back and to keep the house under 1,800 ft² to qualify — following that today means designing to a constraint that buys you nothing. Confirm the current position with the MRA before you plan around any refund.
⚠️ These schemes change with each annual Budget. Treat every figure in Government Schemes, Refunds and Grants as needing confirmation against current MRA and government sources before you commit money on the strength of it.
6. Insurance
- Contractor All Risks (CAR) insurance — covers damage to the works during construction. Confirm in writing whether your contractor carries it and whether your build is named on the policy. See Choosing a Contractor.
- Public liability — covers injury or damage to third parties on site.
- Workmen's compensation — for workers on site. Confirm the contractor has it.
- Fire / home insurance — usually mandatory once the house is complete if you have a loan.