Mortgages in Morocco

Loan to Values

All banks in Morocco provide a maximum loan of 70% of purchase price. Under current legislation all buyers in Morocco are obliged to put down a deposit of 30% for completion. At completion this deposit must be proved via bank transfers.

Moroccan Mortgage Product Ranges

Most loans are granted on a variable rate. Some banks provide 6 months interest only which can be extended to 18 months in special circumstances. The interest rate is linked to the TAUX. Interest rates are reviewed by the Moroccan government on the 1st of January and 1st of July each year. The banks are given a bottom and top range of rates they can work within. Each bank selects its interest rates from within these ranges.

Most banks speak French, Arabic and Spanish with little English fluently spoken. Documentation and statements will not be English when received by you.

The mortgage process in Morocco is slow and whilst it is not always the case they may request at any time that particular or all documentation is officially translated.

The bank is unlikely to undertaken a valuation as they only provide a loan linked to purchase price. It is advisable for re-sales to undertake a private valuation for your own protection and benefit.

Term

Terms range from 12 to 25 years.

Most banks will want to the mortgage paid off by age 70.

Costs

Total purchase and finance costs will equate to around 5% of purchase price

Purchase costs include stamp duty at 1%

Notary fees 0.50%

Registry fees of title deeds 2.5%

Bank charges range from a set fee to 1% of lending

Each month the government applies a mortgage tax of 10% of your interest payment. The bank takes this and pays it on your behalf automatically and show this as a separate payment on your statements. This 10% must be borne in mind when making payments.

Currency

Loans are granted and are payable in Dirham's. Fixed monthly exchange rates for repayments can be organized through our FX arm.

Underwriting Criteria

Most banks work on net income (after tax) and will look to see that your existing monthly debts and new debts do not exceed between 35% and 40% of net incomes.

All products are full status. No self cert is available.

Benefits of Raising Finance in Morocco

Mortgage not secured against UK or country of residency asset

Loan will not affect ability to borrow in UK or country of residency

Interest rates stable and dropping

There are some big differences between the process in Morocco and Europe, exchange exposure and taxes should be considered carefully before deciding to take a mortgage in Morocco. You should get independent advice before completing on a property to understand all your options. Contact us today for this advice for free.

Standard Non Resident Document Requirements for Moroccan Mortgages

Employed:

P60

3 Months pay slips

EmployerÂ’s reference

3 months bank statements

Self Employed:

Self assessment tax return

AccountantÂ’s reference

3 months bank statements

Passports

Copy of purchase contract or selling agents slip

Copy of credit file

If you would like to speak to a lawyer who can assist with your legal requirements in Morocco please link to our lawyer page.

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