Mortgage in Morocco for foreigners: how to finance your real estate project easily
Investing in real estate in Morocco as a foreigner is an attractive opportunity, whether for a second home, a rental investment or a permanent installation. However, getting a real estate credit in Morocco for foreigners may seem complex due to the specific conditions imposed by Moroccan banks.
In this article, we guide you through the essential steps for getting a mortgage in Morocco as a non-resident. We will explain the different financing options, the eligibility conditions, as well as the steps to follow to optimize your file and maximize your chances of acceptance.
Why invest in real estate in Morocco as a foreigner?
An attractive and growing market
The Moroccan real estate market is booming, offering prices that are still accessible compared to other similar tourist and economic destinations. Large cities such as Marrakech, Casablanca and Tangier attract numerous foreign investors looking for profitable properties.
Tax benefits and opportunities for non-residents
Morocco offers favorable tax conditions to foreigners, in particular partial VAT exemptions and attractive tax regimes for expatriate retirees.
Security and stability of the Moroccan real estate market
Thanks to a growing economy and reforms promoting real estate investment, Morocco has become a safe country to invest in real estate, especially for non-residents who want to diversify their assets.
Financing options for foreigners in Morocco
Real estate credit for non-residents: how does it work?
Moroccan banks offer real estate loans to foreigners, under certain conditions. Generally, these loans are granted in rirhams and require solid guarantees.
General conditions for obtaining a mortgage in Morocco
- A minimum personal contribution of 20 to 30% of the price of the property.
- A stable income, often justified by pay slips or balance sheets.
- A loan term of up to 20 years, according to the borrower's profile.
- Interest rates vary between 4% and 6%, depending on the bank and the duration of the loan.
Moroccan banks that finance foreigners
Some banks offer products tailored to non-residents, including:
- Attijariwafa Bank
- BMCE Bank (Bank of Africa)
- CIH Bank
- Crédit du Maroc
Differences between financing in dirhams and in foreign currencies
When you are a foreigner wishing to finance a property in Morocco, you have two main options when it comes to mortgage loans:
- A mortgage in Moroccan Dirhams (MAD), offered by the majority of local banks.
- A mortgage in foreign currencies (euros, dollars, etc.), reserved for certain profiles of expatriates or non-residents.
Each option has its pros and cons, especially in terms of interest rates, currency risk, and banking conditions.
- Real estate credit in Moroccan Dirhams (MAD)
This is the most common option for foreigners, as the majority of moroccan banks finance real estate in dirhams. Here are the main characteristics of this type of financing:
Interest rates are generally more attractive : Rates vary between 4% and 6%, depending on the duration of the loan and the profile of the borrower.
More deals available : Moroccan banks offer loans in Dirhams more easily than in foreign currencies.
Simpler process : The majority of non-residents get a loan in Dirhams more easily, as this is the norm in Morocco.
Exchange rate risk for foreign currency earnings :
If you receive your income in euros, dollars, or another currency, you will have to convert your money into Dirhams regularly to repay your loan. If the exchange rate fluctuates sharply, this can impact the total cost of credit.
- Real estate credit in foreign currencies (euros, dollars, etc.)
Some Moroccan banks offer loans in foreign currencies, generally in euros (EUR) or in dollars (USD). This type of financing is less common and accessible mainly to expatriates or investors with foreign currency earnings. Here are the main characteristics of this type of financing:
Avoid currency risks if your income is in foreign currencies :
If you earn in euros and repay your loan in euros, you are protected against exchange rate fluctuations.
May be more flexible for some expats :
Some banks accept a file more easily if you can justify stable earnings in a strong currency.
Fewer offers available and more stringent criteria :
Foreign currency loans are rarer and often require a solid financial profile with high incomes and a stable professional situation.
Potentially higher interest rates :
Foreign currency loans may be subject to higher interest rates (e.g. 5 to 7%) compared to loans in Dirhams.
The choice between a loan in dirhams or foreign currency depends on your financial situation and your risk tolerance :
If you perceive your salary in moroccan Dirhams or in unstable currencies, it is best to opt for a credit in dirhams, in order to benefit from cheaper rate and to avoid the constraints associated with loans in foreign currencies.
On the other hand, if you have stable earnings in euros or dollars, a credit in the same currency can protect you from currency risk, although you have fewer financing choices and potentially higher rates.
Final advice : Compare offers from Moroccan banks and ask for a loan simulation in both currencies before making a decision.
What are the procedures to obtain a mortgage in Morocco?
Documents required to apply for a loan
- Passport and residence card (if applicable).
- Proof of address.
- Bank statements for last six months.
- Pay slips or balance sheets for the self-employed.
- Promise to sell the property concerned.
Application process and acceptance deadlines
Once the file is complete, the bank carries out a feasibility study. This step may take between 2 and 6 weeks. One agreement in principle is then issued, followed by a thorough check before the funds are released.
Guarantees and insurances required by banks
- Mortgage on real estate funded.
- Borrower insurance, including death and disability.
- Bank guarantee, in case of uncertainty about the solvency of the borrower.
Tips to maximize your chances of getting a mortgage in Morocco
How to properly prepare your bank file?
It is essential to present a solid backrest with the justifications mentioned above, which are clear and consistent. Banks prefer borrowers with regular and well-documented earnings.
The importance of a significant personal contribution
The higher your personal contribution, the more chances of getting an attractive interest rate and to have your file accepted quickly.
Using a real estate broker: good or bad idea?
Specialized brokers can help you negotiate more favourable terms with banks. They also have access to exclusive deals, which can simplify the process.
Mistakes to avoid when applying for a mortgage in Morocco
Do not compare bank offers
It is important to compare several offers before signing a loan agreement. Differences in rates and conditions may be consistent from one bank to another.
Underestimate extra costs
In addition to the cost of the loan, other expenses are to be expected:
- Bank application fees.
- Notary and registration fees.
- Mandatory borrower insurance.
Poor forecasting of exchange rates and taxation
If you finance your property in foreign currencies, changes in the exchange rate can impact the total cost of your investment. Also remember to inquire carefully about the real estate capital gains taxes in case of resale.
Conclusion
Getting a real estate credit in Morocco for foreigners is entirely possible, provided you prepare your file well and comply with the requirements of Moroccan banks. By anticipating the procedures and choosing the right financing offer, you will be able to make your real estate project in Morocco easy.
If you wish to be supported in your efforts, do not hesitate to contact a specialized advisor or a real estate broker who will guide you to the best options adapted to your profile.
Ready to finance your real estate project in Morocco? Compare offers and start applying for credit today!