Mystic Toad Press Blog

Morocco was once a French colony and still has close ties to the country, so it is unsurprising that buying property in Morocco and obtaining a Moroccan Mortgage is very similar to the process of buying property in France.

The initial contract is drawn, after a offer is made and accepted on a home. This is a special kind of contract known as a “Compromis de Vente”. Usually you need to pay a deposit of ten percent at this time. A full refund of this deposit is available if the appropriate clauses were drafted into the Compromis de Vente at the time the agreement is signed. An “escape” clause should be essential when you draw up a mortgage contract that includes a conditional purchase.

Obtaining a mortgage in Morocco is a time consuming and difficult process wherein even though a decision in principle may be acquired the mortgage is not granted until the contract is signed. The inclusion of the “escape” clause is essential to the execution of the Compromis de Vente.

Fifteen years is a typical mortgage term. But, you often are able to have this lengthened to 25 years, though the interest rate here will be greater. You can not get an interest only mortgage for the entire duration of a mortgage, though an interest only option is offered for the first six months of a loan For non-residents, the mortgage application process is cumbersome. Bank staffs are often inexperienced. Thus, we advise obtaining professional help in arranging a mortgage in Morocco.

Conveniently, many property developers offer a construction package deal for Moroccan property. However, don’t lose sight of the fact that, while the appointed lawyers and notaries may make things more convenient for you, it is up to you to look out for your own best interests.

We recommend that you appoint a specialist in Moroccan mortgages, either a lawyer or other expert, regardless of the notary. This specialist will be invaluable in helping you navigate the language, local customs, and the general property purchasing process.