Getting a mortgage to finance your Real Estate Investment in Morocco is remarkably accessible, whether you are a resident or not. The Government is making real efforts to open the Real Estate market to foreigners and one way they are doing this is by facilitating Mortgages, and finance more generally.
This article will focus on the market here in Marrakech where I live and work. However, the same basic rules and conditions apply throughout the Kingdom. Finance Real Estate Morocco.
As a non-resident, you might be considering the purchase of a holiday home or a buy to let property. You might also just be looking to get into the Marrakech Real Estate market as an investor. Now is definitely the time to buy as we are seeing the first upward price pressure in a decade http://www.prweb.com/releases/2017/02/prweb14072921.htm Whatever your motivation for financing your investment here in the Red City, this article will put you on the right track to a quick and easy mortgage.
Most commercial banks in Marrakech offer mortgages to non-resident foreigners. You can either go straight to a branch and discuss with the bank manager or you can go through a mortgage broker. Conditions are broadly similar across the big banks. I tend to recommend the BMCE Bank as they are very experienced in dealing with foreign investment. In any case, you will need to open a Convertible Dirham account with the bank you decide to work with. Here are the BMCE Bank conditions for non-resident mortgages: http://www.bmcebank.ma/front.aspx?SectionId=928 Other good banks providing mortgages in Marrakech include the CIH Bank in Bab Doukalla, the Banque Populaire and the Attijariwafa Bank. The French bank Credit Agricole also does a good package.
My experience shows me that there is a great deal of flexibility in these outlined conditions, notably concerning the amount to put down as a deposit. A non-resident client recently obtained a 70% mortgage on a Riad in Marrakech Medina, way above the stated 50% available in the conditions. Much will depend on your proven income in your country of residence.
It is also noteworthy that banks will only lend against titled property – that is a property that is registered with the Land Registry (Conservation Fonciere). Also, if you are looking to renovate a property with the finance obtained, the amount lent will depend on the current value of the property and not it’s finished worth.
If you want to shop around for the best conditions, it could be wise to go through a local mortgage broker. CAFPI Maroc are experienced and successful brokers in Marrakech. Ask for Mr Saad Chraibi and mention Bosworth Property to get prompt and efficient service.
If you are a resident here in Morocco mortgage conditions are also very accessible. Once again, just drop into your bank and ask the branch director. Or go through a registered broker.
Interest rates on mortgages are coming down, though still relatively expensive compared to Europe. The BMCE is currently offering 4.5% pa, Banque Populaire is probably the cheapest at around 4.1% pa. The Government has promised to align Moroccan interest rates with those in Europe by 2025, so it might be prudent not to fix your rate for too long a period. Go with flexi rates if you can.
Mortgages are typically accorded for between 5 and 25 years. There is an upper age limit of 70 years on repayment, however. Obtaining your cash for your property purchase through a mortgage will typically take between 1 and 3 months. So plan ahead. If you have your eye on a property, get a promise of sale signed and then get to work on your finance.
To resume, getting a mortgage in Morocco is a relatively simple affair. All the big banks offer packages to non-resident foreigners for the purchase of titled property. Deposits are generally between 30 and 50%. Interest rates are in the mid 4% range. The whole process can take between 1 and 3 months, depending on your bank or broker.
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