Are you considering the purchase of a vacation home or investment property in Morocco? How are the plans for funding proceeding?
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. French procedure is closely followed when obtaining a mortgage in Morocco. As the mortgage market in Morocco is still being developed, applicants might find there will be complications during these transactions. When dealing with non-resident applications, there are often difficulties. The mortgage application process is slow, so don’t expect the same standard of speed and customer service from a Moroccan lender as you would expect from a bank at home.
Staff at Moroccan lending institutions often lack both knowledge and experience, which is compounded when dealing with foreign paperwork. 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.
To purchase a home in Morocco, a minimum of 30% down payment is required. The mortgage loans are tied to the price of the house. 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. The Moroccan Dirham will be the currency for the loan and repayments, so ensure that your home bank can transact payments in the Moroccan currency or arrange for a local bank to receive your remittances and make the payments by exchanging the currency for Moroccan currency.
According to your mortgage and specific bank, arrangement fees will be charged. Likewise, when registering the mortgage deed, there is a charge associated with the notary. There will be a mortgage tax that will be added over the span of the mortgage.
Generally, mortgages are given for a period of fifteen years. Locating a lender willing to increase the term to 25 years is possible. Realise the mortgages that have the lowest interest rates are those with the shortest terms. Your loan may be interest-free for the first half of the year, but you will not have interest-only for the entire loan period. In some cases, repayment may be deferred for up to two years, but your lender will require you to continue to pay interest. Terms and conditions apply.
Research local lending policies beforehand so that you are well-prepared. This is the most important aspect of obtaining a Moroccan mortgage. The application process is very time consuming and painful and will create alot of frustrating feelings. 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.