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Investment Finance In Morocco

The financial options below will need to be considered when planning your investment strategy for a property in Morocco.


Financing your Moroccan property investment is an important decision and could take the form of your own cash resources or, as most investors prefer, a mortgage or equity release scheme. Morocco offers mortgages for non-residents and all banking products are becoming widely available.

1. Mortgages

We will gladly point you in the right direction of Moroccan financial institutions that will finance your investment. We have access to mortgages from many Moroccan and offshore banks, while the final choice depends solely on your circumstances.

Although mortgages are available in Morocco, the most an overseas buyer can currently borrow is normally 60% of the valuation price.

The purchase can be paid in either Euros, US Dollars or Sterling, and needs to be transferred from a foreign account into a Moroccan bank where the transaction will be processed into Dirhams.

Mortgages are generally more expensive than British equivalents. It is a good idea to shop around the British banks as some will also lend for Moroccan property.

Typical characteristics of a Moroccan mortgage:

Rate

5.8%

Loan purpose

Residential

Maximum loan

Max. 70% of valuation

Term

Up to 15 years

Maximum age

65

Repayment

Capital and interest

Currency

Dirams

Fixed rates

For 5 years or full duration of mortgage

Interest rate (Feb 06)

5.5%

Note: 6 months mortgage installments may be required to be held in the bank account.

Moroccan banks will normally lend you up to 35% to 40% of your net salary without prior credit checks or confirmation of existing financial obligations.

Click here to get a quote for a Moroccan mortgage

To help the mortgage application system move more swiftly it is advisable to have the following documents to hand.

Employees will need:

  • Letter to prove employment
  • Last six months bank statements
  • Last three months pay slips

Business owners will need:

  • Company statutes and bylaws proving who owns the company
  • Certificate of incorporation
  • Last two years company tax statements
  • Last six months company bank statements

The Moroccan legal system is Latin-based and similar to that found in France and Spain. Property purchasers should allow for around 5% of the purchase price extra to cover registration fees, Notary's tax, Notary's fees, land registry and other sundry expenses.

The Association of Commerce Banks is a body which represents all recognized financial institutions in Morocco, and as such acts as a bond of reputability. Many of these banks will offer mortgage facilities to foreigners.

Moroccan ACB member banks:

  • Bulbank
  • Biochim
  • Central Cooperative Bank
  • Economic & Investment Bank
  • Demirbank
  • Encouragement Bank
  • Eurobank
  • ING Bank
  • First Investment Bank
  • Roseximbank
  • Expressbank
  • Societe Generale
  • Union Bank
  • United Moroccan Bank
  • Bank DSK
  • Procredit Bank
  • Tokuda Bank Plc

Off-Plan Financing

Investors must remember that sometimes the developer will offer various finance options. This will often entail altering the required initial deposit and other key payment points throughout the construction phases of the property. Usually the developer can offer the most competitive finance options to investors and these are certainly worth considering.

As always, before making a commitment, we recommend you discuss your investment strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

learn more about financing your Moroccan property with a mortgage.

2. Equity Release

Put simply, equity release is a way of releasing some cash from the home without having to sell up and move house.

If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your Moroccan property investment

Learn more about financing your Moroccan property investment with equity release.

3. Alternative Finance

Not everybody falls into a category and some investors will need to raise finance in an alternative fashion to equity release or mortgage options. There are other borrowing facilities available to investors of Moroccan property.

Find out more about alternative finance options for your investment in Morocco.




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