Morocco follows French law very closely so the process of buying is very similar to that of France.
After an offer has been accepted an initial contract “ compromise de vente” is drawn up. At this point it is normal for a deposit of around 10% of purchase price to be paid. This deposit can be fully refundable based on clauses added at time of signing. The contract can include a clause that any completion is subject to obtaining mortgage financing.
Whilst it is possible to obtain a mortgage in principle before signing the initial contract a formal offer of lending can only be issued after this contract is place so it is important if borrowing is required for completion that a get out clause is included. It is always a good idea to appoint an independent lawyer as the Notary who undertakes conveyance will work on behalf of the buyer and seller.
After the initial contract is signed the searches will be undertaken. It is not uncommon for developers to sell pre-constructed properties before they have bought the land or sought planning permissions so it is important to check the title deeds of the property before signing the final contract. Your legal adviser should also check the CRI of that region to see what other infrastructure works are forecast close to where you are buying. Unlike many countries the banks in Morocco may not undertake these searches themselves.
Total additional costs to the purchase will be in the region of 5% of the purchase price and a mortgage tax equating to 10% of the interest payable is taken every month and paid direct to the government.
The purchase costs include.
- Registration tax 2.5% of purchase price
- Notary fees 1% of purchase price
- 0.50% Notary tax
- 1% for transfer of title deeds
- Administration fees totaling approximately € 500
- 1% to 2.5% to obtain title deeds if not in place
- Estate agent fees if not included in price.
- All completion s are signed at Notary.
- We will charge a 1.5% mortgage placement fee which will include broker fee. This fee is payable
upfront but refundable bar £ 250 should the mortgage not complete.
Product MO1
Purchase only
70% Capital and Interest
All Nationalities considered documents may require official translation
Maximum age |
Mortgage must be paid in full by age 73 and applied for by age 64 |
Maximum LTV |
70% of valuation or purchase price whichever is the lower |
Maximum loan size |
None |
Maximum term |
25 years |
Repayment type |
Interest only 6 months. Followed by 24.5 years repayment |
Compulsory products |
Buildings and Life insurance |
Bank arrangement fee |
0.60% of loan amount payable after approval of loan |
Interest Rate |
Client specific range 4.64% to 5.85% |
Rate review |
1st of January and 1st of July each year |
Income criteria |
Current and new liability must not exceed 40% of net income |
Redemption penalty |
1 months interest |
Credit search UK |
Yes |
Title deed tax |
1% |
Notary and Registry fees |
3% |
Valuation costs |
N/A |
Buildings and Life insurance |
Client and property specific |
Mortgage processing fee |
1.5% of lending |
Product MO2
Purchase only
70% Capital and Interest
All Nationalities considered documents may require official translation
Maximum age |
Mortgage must be paid in full by age 60 |
Maximum LTV |
70% of valuation or purchase price whichever is the lower |
Maximum loan size |
None |
Maximum term |
15 years |
Repayment type |
Interest only 6 months. Followed by 14.5 years repayment |
Compulsory products |
Buildings and Life insurance |
Bank arrangement fee |
Client specific based on loan size and term |
Interest Rate |
7 year term or less 4.72% |
Rate review |
1st of January and 1st of July each year |
Income criteria |
Current and new liability must not exceed 40% of net income |
Redemption penalty |
1 months interest |
Credit search UK |
No but credit file required |
Title deed tax |
1% |
Notary and Registry fees |
3% |
Valuation costs |
N/A |
Buildings and Life insurance |
Client and property specific |
Mortgage processing fee |
1.5% of lending |
Product MO3
Purchase only
70% Capital and Interest
All Nationalities considered documents may require official translation
Maximum age |
Mortgage must be paid in full by age 60 |
Maximum LTV |
70% of valuation or purchase price whichever is the lower |
Maximum loan size |
None |
Maximum term |
25 years variable |
Repayment type |
Capital and Interest |
Compulsory products |
Buildings and Life insurance |
Bank arrangement fee |
€ 500 plus 10% VAT |
Interest Rate |
Client specific range from 5.07% to 5.35% 5.15% |
Rate review |
1st of January and 1st of July each year |
Income criteria |
Current and new liability must not exceed 40% of net income if incomes below € 4.600 pm. |
Redemption penalty |
1 months interest |
Credit search UK |
No but credit file required |
Title deed tax |
1% |
Notary and Registry fees |
3% |
Valuation costs |
N/A |
Buildings and Life insurance |
Client and property specific |
Mortgage processing fee |
1.5% of lending |
Product MO4
Purchase only
70% Capital and Interest
All Nationalities considered documents may require official translation
Maximum age |
Mortgage must be paid in full by age 70 |
Maximum LTV |
70% of valuation or purchase price whichever is the lower |
Maximum loan size |
None |
Maximum term |
25 years |
Repayment type |
Capital and Interest |
Compulsory products |
Buildings and Life insurance |
Bank arrangement fee |
0.50% |
Interest Rate |
Variable loans 7 years or less 4.64% |
Rate review |
1st of January and 1st of July each year |
Income criteria |
Current and new liability must not exceed 40% of net income |
Redemption penalty |
1 months interest |
Credit search UK |
No but credit file and authority to search required |
Title deed tax |
1% |
Notary and Registry fees |
3% |
Valuation costs |
Advised on application |
Buildings and Life insurance |
Client and property specific |
Mortgage processing fee |
1.5% of lending |
Morocco products |
Maximum Percentage of purchase price subject to valuation |
Maximum Percentage of valuation |
Term |
Max Age |
Bank Fee |
Redemption penalties |
Repayment Basis |
Interest rate |
Product MO1 |
70% |
70% |
25 years |
73 |
0.60% |
1 Months interest |
Interest only up to 6 months |
Rates from |
Product MO2 |
70% |
70% |
15 |
60 |
Client specific |
1 Months interest |
Interest only up to 6 months |
7 year term or less 4.72% |
Product MO3 |
70% |
70% |
25 Years Variable |
60 |
€ 500 plus vat |
1 Months interest |
Capital and Interest |
Rates from 5.07% |
Product MO4 |
70% |
70% |
25 Years |
70 |
0.50% |
1 Months interest |
Capital and Interest |
Variable 7 years or less 4.64% |