Mortgages and Financial Advice

Having found the property you want to buy whether it be a dream family home, an off plan investment or a place to rent out, what is the best finance option for you?

• Which is the best lender to go to?
• What are the different interest rates?
• What is the maximum I can borrow?
• What documentation do I need?
• Can I get a mortgage for an “Off-Plan” purchase?
• Can I get a loan to reform a property?

We understand that buying any property involves a major financial outlay and making the right decision when selecting the best mortgage is vital. The decision can save or cost you thousands. Buying a property in Morocco can seem daunting with a different banking system, a different language and a different currency.

However, help is at hand here at the Moroccan Mortgage Alliance, we deal with a wide range of respected financial institutions and understand how best to deal with many of the issues peculiar to the Moroccan market. We have assisted many clients with difficult cases and our experience will help you significantly.

What do I need to apply for a mortgage?

Document requirements vary between lenders, products and clients’ situation. Our experience allows us to advise you based on what you are able or willing to demonstrate. As a general rule the information below is required:

• Copies of passports
• Proof of income
• Copy of deposit receipt or purchase contract.
• Reference letter from your bank
  

There are many various ways to prove income:

What Products are available and how much can I borrow in Morocco?

Choosing the right product for your circumstances and requirements is essential, and our experience allows us to advise you of your options.

The Non Resident Moroccan mortgage market is relatively new and therefore the products available limited . We have painstakingly researched the market for the best lenders and negotiated for the best products available today.

For non residents the range of products available includes Mortgages of up to 70% of the purchase price. There is also an option of deferred payments up to 1 year for a maximum term of 25 years.

*All products are subject to status and lender terms and conditions.

What Interest Rates are available?

The interest rates available are fixed or variable and the current lowest rate is below 6%*. We monitor the rates regularly to ensure that we are always able to offer you the best terms available. For the current best rates please ask one of our advisors.

* rate as of September 2006

How do I apply for a Moroccan mortgage?

Once you have decided on the product to suit you we will require a selection of documentation and information as follows, in order to approach the lender on your behalf:

1. A copy of passports for all applicants.
2. Documentation proving income such as payslips and bank statements (the documents specific to your application will have been discussed with our advisor).
3. A copy of the purchase contract and deposit receipt.
4. Details of your solicitor (we understand that you may not already have established a relationship with a reliable solicitor. As part of our service we are able to recommend professionals on an unbiased basis).
5. Details of any third party involved such as a real estate agent or developer.
6. Details of the property you are purchasing

In most cases clear faxed or scanned and emailed copies of documentation are sufficient.

Do I have to be in Morocco to get a mortgage?

No, we work for you. We will organize everything for you and your lawyer can prepare everything. You will only need to attend the signing of the deeds in person.

Can I buy multiple properties for investment?

Yes, we have lenders who offer this option subject to status.

Bank Fees

All banks have arrangement fees, we source the most competitive for our clients.

Handling bank accounts from abroad

Many Moroccan banks now offer an internet banking service.

How long does it take to get a mortgage?

If all the relevant proofs are available, the lawyer has completed the paperwork and the searches are in order, and the vendor is ready to complete it can take between 4 to 8 weeks. The larger the loan the longer it usually takes.

What are the costs involved?

There are a number of fees associated with purchasing a property in Morocco and these will be explained to you on your first consultation. We are able to provide an approximate breakdown of costs; however your lawyer will provide the exact breakdown close to completing your purchase.

If you are buying an off plan property and want the peace of mind of knowing you can have the mortgage before committing to the purchase, we are able to obtain an agreement in principle from a lender. Our fee for this work is €500.00. This figure is deductible from our final fee on completion.

Can I get a mortgage quotation before I start looking?

Yes, speak to one of our advisors or contact us on-line for an instant quotation thereby determining a budget approximation.

How do the lenders work out my exact borrowing limit?

This varies from lender to lender. Speak to one of our consultants to assess your financial situation and they will advise you.

Your Partner in Finance

We work very closely with the real estate industry so we fully understand the relationship involved between all parties. We communicate at all times with lawyers, banks, agents and of course you. It is in everyone´s interest that arranging the finance proceeds smoothly and as quickly as possible.

Once we receive the mortgage offer we will immediately contact you. Faxing you and your lawyer a copy confirming the terms and conditions therein. Providing you are satisfied your lawyer will take over and organize the signing at the notary.

The Alliance is founded on client and business relationships. We have a very strong network of professional advisors. So, if you require independent advice on:

• Foreign exchange
• Legal Services
• Insurance Services
• Accounting Services ( Moroccan and Offshore companies )

Customer Service

We maintain contact with you during the transaction and through to completion. As part of our ongoing after sales service we are at your constant disposal to clarify any further queries you may have, even after you have completed on the purchase of your property.

Please speak to one of our advisors, who will be more than happy to answer your questions, or introduce you to someone who can.