And you are looking to purchase a holiday retreat or an investment property located in Morocco. How are the plans for funding proceeding?
Someone who isn’t able to purchase their Moroccan real estate in full may negotiate a mortgage to pay the remainder of the purchase cost, less the deposit they had available. Mortgage arrangement in Morocco follows French practices very closely. As the mortgage market in Morocco is still being developed, applicants might find there will be complications during these transactions. When dealing with non-resident applications, there are often difficulties. The mortgage application process is slow, so don’t expect the same standard of speed and customer service from a Moroccan lender as you would expect from a bank at home.
The Moroccan lender’s staff often has difficulty dealing with overseas documentation due to a lack of knowledge and experience. Usually you are also expected to provide legal translations of your documents and keeping copies of the originals so that they may be viewed if asked for.
In Morocco, any mortgage loan is linked to a price which has been paid for a home and will require a 30% minimum down payment. For your own peace of mind, you may wish to obtain a property assessment because the lending bank probably will not do so. When you take out this loan, you will receive the money by Moroccan Dirham. You will also be expected to repay it in this currency. It is important that you find out in advance whether or not your bank can handle this. If not you will need to make arrangements with a local bank or exchange.
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. Likewise, when registering the mortgage deed, there is a charge associated with the notary. In addition, a mortgage tax will be assessed across the term 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. Remember that the interest rate will be lower for shorter morgage 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. In some cases, repayment may be deferred for up to two years, but your lender will require you to continue to pay interest. Terms and conditions apply.
Before accepting the terms of a loan, make sure you thoroughly research any terms and conditions. This is the secret to negotiating a mortgae in Morocco. The application process is very time consuming and painful and will create alot of frustrating feelings. If you take the time to understand what causes your stress ,you will be able to keep the level to a minimum. Using the services of a Moroccan Mortgage expert will prove invaluable when arranging home financing in Morocco.
