Moroccan Mortgage Information

Buying a home or an investment property in Morocco is growing in popularity and in the last few years we have seen increasing demand for mortgages to purchase a Moroccan home. The ability to borrow money to do this however has not quite kept pace with the demand from Northern Europeans for cutting edge mortgage products. That said there is a mortgage marker available for non residents of Morocco.

Moroccan Mortgage Products

Mortgage lending in Morocco is at variable rate and on a repayment basis with very limited fixed rates available. Moroccan mortgages are linked to the TAUX which means that the rate of borrowing against which you pay interest will be reviewed twice yearly.

Loan to Values

Moroccan mortgage loans are up to 70% for non-residents of Morocco.  The loan percentage is linked to the purchase price of the property.

Terms

Moroccan mortgage terms range from 12 to 25 years, are age and lender related. It is usual to have repaid the mortgage by age 70.

Costs

All Moroccan banks charge an arrangement fee for lending you the money, this ranges from 1% upwards. Other costs include mortgage taxes and some of the deed costs. You should allow in the region of 5% of the price of your house to cover your costs in Morocco.l. You should contract an independent Moroccan lawyer, not one recommended by your agent or developer, to help with the purchase and make sure you are made fully aware of the provision of costs for completion by your lawyer.

Currency

Your Moroccan mortgage will be repayable monthly in Dirhams. To Buy Dirhams at the best rates click here.

Underwriting

Mortgages in Morocco are only granted on a full documentation and status basis. Moroccan banks assess the lending against a percentage of your disposable income unlike UK banks that tend towards lending you a multiplication of your annual income.

Hints & Tips

1. Check your budget and make extensive mortgage enquiries before even travelling specifically to view Moroccan property. It would be a wasted trip and quite heartbreaking to see your dream home and discover you cannot borrow the amount you need to buy it.

2. Always use an independent lawyer to act for you. Do not go on the recommendation of your agent, developer or the seller.

3. Be prepared for hiccups along the way. Moroccan law differs from that which you are used to. The Moroccans use a Notary system that is long, drawn out and expensive.

4. Do not sign anything until your lawyer has checked the paperwork and your finances are in place. You could end up losing a deposit.

5. Do not get drawn into financial structures such as using companies and offshore havens to purchase the house until you have thoroughly understood the implications of doing so.