Buying a home is one of the biggest financial decisions you'll ever make. While many buyers focus on the property price, they often overlook the hidden costs that can add thousands to the total expense.

Understanding these additional costs will help you:

• Plan your budget realistically
• Avoid unexpected financial stress
• Make an informed home purchase decision

1. Legal and notary fees

What it covers:
✅ Drafting the sale agreement
✅ Property title searches
✅ Registration with authorities

💡 Estimated cost: Typically 1% – 2% of the property value.

📌 Tip: Always confirm legal fees upfront to avoid surprises.

2. Government registration and stamp duties

In Mauritius, buyers need to pay registration duties to officially transfer ownership of a property.

💰 Key fees to consider:
🔹 Registration duty – Usually 5% of the property price.
🔹 Stamp duty – Applies to documents related to the transaction.

📌 Tip: If you're a first-time buyer, you may qualify for registration duty exemptions under specific conditions. Ask your notary.

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3. Mortgage fees and bank charges

If you're taking out a home loan, the bank may charge:

💸 Processing fees – Valuation fees: 0.5% of loan/ facility amount with a minimum of MUR 1,000 and maximum of MUR 5,000
💸 Valuation fees – Required to assess the market value of the property before the bank approves financing.

📌 Tip: Ask your bank about any negotiable fees or promotions on home loans.

4. Insurance costs

Many lenders require insurance coverage before approving a mortgage.

🏡 Home insurance: Covers damage to the property due to natural disasters, fire, or theft.
👥 Mortgage life insurance: Ensures the loan is repaid in case of unexpected death or disability.

💰 Estimated cost: Varies based on the property value and lender requirements.

📌 Tip: Compare policies to find the best coverage at the lowest premium.

5. Property maintenance and utilities

Once you own the home, ongoing costs include:

✅ Water, electricity, and internet bills
✅ Municipal rates and land tax
✅ Syndic fees (if applicable)

📌 Tip: Budget at least 5% of your home’s value annually for maintenance and unexpected repairs.

6. Moving costs and renovations

Moving into a new home isn't just about signing the paperwork—there are additional expenses:

🚚 Moving company fees – If you’re relocating furniture.
🔨 Renovations and repairs – If upgrades are needed before moving in.

📌 Tip: Get multiple quotes for moving services and home improvements before making commitments.

Final takeaways: Budgeting beyond the property price

Many first-time buyers focus only on saving for a down payment. However, these hidden costs can add 10% – 15% to your total home-buying expenses.

💡 Before buying a home:
✔ Research all associated costs.
✔ Speak to your bank about mortgage fees and insurance.
✔ Keep an emergency fund for post-purchase expenses.

📌 Thinking of buying a home? MCB offers tailored home loan solutions to help you plan your finances effectively.