Raising Mortgage Finance in Morocco is Simple

Are you interested in raising mortgage finance in Morocco? Here are a few useful tips to choose from the best mortgage options in Morocco. It is worth taking the trouble researching and knowing all about mortgages in Morocco before you proceed further.

Loan amount
You can get a maximum loan of 70% on the purchase price of the property from any bank in Morocco. The current legislation requires buyers to give 30% of the loan amount as down payment. It is necessary to provide evidence of bank transfers, as you deposit this amount.

Tips on picking the right Moroccan mortgage product
Mortgage loans in Morocco are generally offered on variable rate of interest. The Moroccan Government reviews the interest rate each year and gives banks a bottom and top range, within which they can work. It is in your interest to know the bottom and top rates. Most of the banks use French, Spanish and Arabic language to transact. You cannot receive documents and statements in English. Hence, it is necessary to take the help of your friends or colleagues, who are proficient in any of these languages. The mortgage process in Morocco is generally slow. It will take more time to get the translation of any specific document.. Hence, it is necessary for you to start the process of raising mortgage finance three months in advance.

Term
The term of mortgage finance ranges from 12 to 20 years in Morocco. In rare cases, it is possible to obtain a 25 year term of repayment. If you want to benefit from maximum term period, you must approach a bank that offers loans for terms up to 25 years.

Valuation of property
Valuation of property prior to loan approval is usually not done by the banks in Morocco. Banks simply provide the loan, which depends exclusively on the purchase price. You can carry out a valuation on your own for your protection.

Age restrictions
Most of the banks in Morocco require you to pay off the mortgage loan amount, before you reach the age of 70. Some banks allow you to pay off the loan, up to the age of 73.

Cost of raising mortgage finance in Morocco
The purchase and finance costs will be around 5% of the price of your property. Out of this, 1 % of the purchase price goes towards the stamp duty and 0.5% towards notary fees. You must pay 2.5% of the purchase price for registering the title deeds. Banks charge 1% fee for lending loans.

Mortgage tax
The Moroccan Government charges 10% mortgage tax on your interest payment every month. Banks deduct this amount and show it as a separate payment in your transaction. As there are numerous differences between the mortgage financing processes in Europe and Morocco, you need to consider the important aspects, before raising mortgage finance in Morocco. You can obtain valuable advice from experts to understand your mortgage options in this country.

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