So you’re ready to purchase real estate in Morocco for a holiday home or as an investment. How would one put the financing in place?

Someone who isn’t able to purchase their Moroccan real estate in full may negotiate a mortgage to pay the remainder of the purchase cost, less the deposit they had available. In Morocco, they arrange mortgages very similarly to French procedures As the mortgage market in Morocco is still being developed, applicants might find there will be complications during these transactions. Complications often arise if someone who is not a resident makes an application. 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. It will be necessary for you to provide official translations of your domestic documentation as well as original copies of these documents.

Mortgages in Morocco are based on what you paid for the home and require 30% down as a minimum payment. Keep in mind that the bank holding your mortgage probably won’t demand a property assessment, but you may want to do it anyway to reassure yourself. 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. In addition, a mortgage tax will be assessed across the term of the mortgage.

Traditionally, a mortgage is given for a length of fifteen years. Locating a lender willing to increase the term to 25 years is possible. Understand, though, that the briefer the mortgage period, the less interest will be incurred. 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. Sometimes you can obtain a repayment holiday for as long as two years, but even then you will need to make payments on the interest and meet any other lender conditions.

It is a good idea for you to possess a good, working knowledge of your local lending practices so that you can ensure that you are prepared and well-armed. It’s the key to arranging a mortgage in Morocco. You may anticipate a tedious and bothersome application procedure in addition to much frustration. If you take the time to understand what causes your stress ,you will be able to keep the level to a minimum. When arranging home financing in Morocco, a Moroccan Mortgage expert, proficient in the process– especially if you are foreign to the region– will be invaluable.

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