So you’re ready to purchase real estate in Morocco for a vacation or an investment. How are you able to arrange some kind of financing?

Someone who isn’t able to purchase their Moroccan real estate in full may negotiate a moroccan mortgage to pay the remainder of the purchase cost, less the deposit they had available. Mortgage arrangement in Morocco very closely follows French practices. 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. Don’t expect the same standard of speed and customer service from a Moroccan lender as you would expect from a bank at home because the mortgage application process is slow.

The Moroccan lender’s staff often has difficulty dealing with overseas documentation due to a lack of knowledge and experience. It will be necessary for you to provide official translations of your domestic documentation as well as original copies of these documents.

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. You may have to have a property assessment done on your own because lending institutions are not likely to conduct one. The repayments will be made by Moroccan Dirham therefore you should ensure that you can transact payments in the Moroccan currency. Alternatively you could arrange for a Moroccan bank to take your payments.

The bank arrangement fees are charged; these vary a lot depending upon the institution that you use, not to mention the kind of mortgage you pick. When registering a mortgage deed you will be charged a notary fee in addition to other fees. 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. Still, you may find a lender who will extend the term all the way to 25 years. Realize the mortgages that have the lowest interest rates are those with the shortest 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.