A simple guide to mortgages in Morocco

There is no doubt that the Morocco’s Real Estate sector is booming. International investors are finding Morocco a lucrative property market. To retain their interest, Morocco now offers several banking products and other facilities for international investors. With all facilities in place, mortgages in Morocco are easily available.

Check with your property dealer
A good property dealer will take you through the entire legal process of buying property in Morocco. The dealer will be able to tell you in detail about the available financing options that you can choose from. Additionally, this guide covers the basics of key information and procedures related to mortgages in Morocco. You can choose financing options offered by Moroccan or offshore banks.

Mortgage cap
An international buyer can borrow about 70% of the property valuation price. You can pay in Euros, American Dollars or the Sterling. However, you first need to open a bank account in Morocco itself. The money can then be transferred to the Moroccan account and spent as Dirhams – the Moroccan currency.

Documents required for mortgages in Morocco
The following documents can help you speed up the legal process when buying property in Morocco:
1 – If you are a business owner, you need to show:

  • Certificate of incorporation of your company
  • The tax statements of the last two years
  • Bank statements of the last six months
  • Company bylaws and statutes or other relevant documents proving the ownership of the company

2 – If you are a salaried person then you need to show:

  • Your bank statement of the last six months
  • Your pay slips of the last three months
  • A letter from your employer certifying you as a genuine employee of the company

Which banks offer mortgages in Morocco?
The Moroccan Association of Commerce Banks represents financial institutions in the country. Several banks which are part of this Association include Central Co-operative Bank, Economic & Investment Bank, Biochim, Bulbank, Encouragement Bank, ING Bank, First Investment Bank, Eurobank, Demirbank, Societe Generale, Roseximbank, Expressbank, Union Bank, United Moroccan Bank, Procredit Bank, Bank DSK and Tokuda Bank Plc.

Does the developer help?
If you are purchasing property in Morocco and looking at long-term investment then the developer can also help you with mortgages. The developer may offer you some options for finance if you invest in a construction project in its initial stages.

Equity Release Scheme
Some international investors, particularly in the United Kingdom, like to avail an equity release scheme for mortgages in Morocco. You would be interested to know that you can get a loan if you are older than 50 years and own a house.

Mortgage amount
When considering mortgages in Morocco, do keep in mind additional costs apart from the value of the property. These may include documentation charges, payments to notary, taxes etc. Also once you decide your options, you must discuss your plans in details with a qualified and committed notary or financial advisor.

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