How to Obtain a Moroccan Mortgage
Are you considering the purchasing holiday home or investment property in Morocco? How would one put the financing in place? The use of an expert on Moroccan mortgages who is familiar with the market and all application processes is essential when arranging finance for a home in Morocco, especially for those who do not speak the language or understand the customs of the area.
In order to buy property in Morocco, you must either purchase it outright, or arrange for a mortgage for any remaining balance that cannot be paid up front. French procedure is closely followed when obtaining a mortgage in Morocco. The mortgage market in Morocco is still in its infancy – applicants often encounter complications when applying. These inconveniences can often be complex when applying as a non-resident. Moroccan banks are much slower than banks that you may be used to; expect that the mortgage application service is slow and at a lower standard than in a Western bank. Unfortunately, the people who work with the Moroccan lender are often not well trained, especially to handle the paperwork associated with overseas transactions. Usually you are also expected to provide legal translations of your documents and keeping copies of the originals so that they may be viewed if asked for.
Mortgages in Morocco are based on what you paid for the home and require 30% down as a minimum payment. You may have to have a property assessment done on your own because lending institutions are not likely to conduct one. When you take out this loan, you will receive the money by Moroccan Dirham. You will also be expected to repay it in this currency. It is important that you find out in advance whether or not your bank can handle this. If not you will need to make arrangements with a local bank or exchange.
According to your mortgage and specific bank, arrangement fees will be charged. When registering a mortgage deed you will be charged a notary fee in addition to other fees. The mortgage tax will be spread over the entire time frame of the mortgage.
Traditionally, a mortgage is given for a length of fifteen years. Still, you may find a lender who will extend the term all the way to 25 years. Remember that the interest rate will be lower for shorter mortgage terms. Interest-only mortgages are unavailable over the life of the loan, but you’re able to get an interest-free loan for the initial six months. A repayment holiday can be obtained for up to two years in some instances, but keep in mind that you will still need to make the interest payments and the lender may apply certain other conditions.
