In Mauritius, countless families do not meet the income criteria needed to obtain a bank loan…
Recently approved by the Council of Ministers, the Rent-to-Own Scheme forms part of the national housing strategy. By entrusting its implementation to the NHDC, the government reaffirms its commitment to supporting the most vulnerable households and addressing the shortcomings of existing financing mechanisms.
So, how does it actually work?
Created to ease the transition from tenant to homeowner, the Rent-to-Own Scheme stands as a viable option for those without access to mortgage financing.
With this initiative, families earning modest incomes will be entitled to rent a home through the National Housing Development Company Ltd (NHDC) for Rs 4,000 a month.
Designed for society’s most vulnerable, the scheme benefits old-age pension holders, single mothers, welfare recipients, and families whose income levels fall short of bank lending criteria.
After five years, tenants whose financial position allows them to qualify for a loan from the NHDC or Maubank will see as much as 80% of the rent they have paid credited towards the purchase of their home. If not eligible, their rental agreement can be renewed for another five years.
“Homeownership remains out of reach for many Mauritians,” noted Shakeel Mohamed, Minister of Housing. “Through this scheme, they can at last aspire to own a home, despite modest income levels.”
A point-based approach to guarantee fairness
A detailed points framework, drawn up by the NHDC allocation committee, will guide the evaluation of applications. Scores will reflect household composition and time spent on the waiting list, favouring single parents and families with several dependents.
Introduced alongside ongoing initiatives, the scheme supports efforts to widen access to affordable housing, while many NHDC projects are still being built or prepared for handover.
