Purchasing property in Morocco is becoming increasingly attractive to foreigners and Moroccans residing abroad (MREs). Naturally, financing such a real estate transaction is a key consideration. Most buyers do not have the necessary capital to acquire a property in Morocco without a loan, whether it's for a house, riad, or apartment. Mortgages can be obtained from French banks as well as Moroccan banks, provided certain conditions are met.
Conditions for Obtaining a Mortgage in Morocco
A non-resident can secure a mortgage in Morocco if the following conditions are fulfilled:
- Opening a convertible dirham account.
- A down payment of at least 30% in foreign currency: This ensures eligibility for the repatriation guarantee, meaning that upon resale, the borrower can transfer the proceeds back to their country of residence.
- Providing a mortgage guarantee, which could be: a guarantee from a foreign bank, a mortgage on a property, a salary that is at least twice the monthly repayment amount.
The foreign currency deposit can be made through direct exchange or by transfer from the convertible dirham account. This transaction must be registered with the Moroccan Exchange Office to later benefit from the repatriation guarantee.
As in France and other European countries, banks do not automatically approve mortgage applications, even if all conditions are met. Factors like age limits may apply. It is advisable to consult multiple Moroccan banks to secure the most favorable interest rate and benefit from additional services such as the ability to defer a payment.
💡 Tip: Some Moroccan banks have agreements with French banks, offering customized mortgage solutions for French residents.
Mortgage Repayment with Moroccan Banks
Loan repayments in Morocco follow a monthly installment system, similar to other countries. Payments can be made directly in foreign currency or through direct debit from a convertible dirham account.
The monthly installment amount depends on the interest rate, which can be fixed or variable. In 2019, mortgage interest rates declined due to:
-The central bank (Bank Al-Maghrib) maintaining its key interest rate.
-Strong competition between Moroccan banks.
By the end of 2019, interest rates ranged between 4.50% and 5.25%.
FAQ: Financing Real Estate in Morocco with a Moroccan Bank
Can I benefit from the repatriation guarantee if I take out a mortgage from a Moroccan bank?
Yes. You can repatriate the funds from your property sale in Morocco if at least 30% of the purchase price was paid in foreign currency (either directly or via a convertible dirham account).
Do I need to be a Moroccan resident to obtain a mortgage in Morocco?
No. More and more Moroccan banks are granting mortgages to non-residents. Some have agreements with foreign banks, offering financing solutions tailored to the needs of foreign borrowers.
