Mauritius may soon get a new kind of home loan called "buy-to-let," made just for people who want to buy houses to rent out, not to live in themselves. A member of parliament, Manoj Seeburn, a lawyer elected in 2024 for the Vieux Grand Port and Rose Belle area, asked the government if it would help create this kind of loan, with support from the Bank of Mauritius.
The Prime Minister said Mauritius already has ways to borrow money for houses through banks, insurance companies, and the Mauritius Housing Company. But buy-to-let loans are different because banks look at expected rent money, not the borrower's job income, to decide how much to lend.
He explained that banks could already offer these loans if they wanted to, since rules from the Bank of Mauritius allow it. However, these loans might need buyers to pay a bigger deposit themselves, because renting out houses can be riskier for banks.
He further added that as of August 2026, no bank has asked for this kind of loan yet, but the government is open to studying the idea, even looking at how it works in the United Kingdom.
Could foreigners get a buy-to-let loan in Mauritius
Non-citizens can already borrow to buy property in Mauritius, though under stricter terms than residents, so a future buy-to-let product would likely extend this same non-resident framework rather than create a fully new eligibility class. Foreign and non-resident buyers currently get loan-to-value ratios of roughly 50 to 70 percent, meaning a deposit of 30 to 40 percent, interest rates around 5.5 to 8.5 percent, and shorter terms of 15 to 25 years compared to residents. These loans are already tied to approved investment schemes like PDS, IRS, RES and Smart City, the same schemes that qualify buyers for residence permits, so a formal buy-to-let product would most plausibly sit inside this existing foreign-investor lending channel.
How ‘buy-to-let’ works in the UK
Rent decides the loan, not salary. UK lenders size the loan around expected rental income rather than the borrower's paycheck, typically requiring monthly rent to cover 125 to 145 percent of the mortgage payment.
Bigger deposit needed. Buyers usually need a 20 to 25 percent deposit, sometimes up to 40 percent for the best rates, since most lenders cap borrowing at 75 to 80 percent loan-to-value.
Interest-only is standard. Most UK buy-to-let mortgages are
interest-only, so monthly payments cover just the interest while the original loan amount is repaid later, usually by selling the property or remortgaging.
Established since 1996. The UK buy-to-let mortgage has existed since 1996 and is one of the world's most mature rental-financing systems, which is likely why Mauritius's Prime Minister referenced it as a model worth studying.
If Mauritius makes the move, more people might buy homes just to rent them out, giving more families places to live.
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