Oasis Morocco - Mortgages
Mortgage loan amount: 60% of purchase price (currently the maximum)
Term: 25 years – maximum age 70
Interest rates from 5.5% fixed or 5.07% variable (rates change twice yearly mid January and July)
All Dirham mortgages – we deal directly with the banks in Morocco as the mortgage is secured on the property in Morocco
Redemption penalty 1%
Moroccan Mortgage Product Ranges
Most loans are granted on a variable rate. Some banks provide 6 months interest only which can be extended to 18 months in special circumstances. The interest rate is linked to the TAUX. Interest rates are reviewed by the Moroccan government on the 1st of January and 1st of July each year. The banks are given a bottom and top range of rates they can work within. Each bank selects its interest rates from within these ranges.
Most banks speak French, Arabic and Spanish with some English spoken. Documentation and statements will typically be in French. The mortgage process in Morocco can be a little slow but our relationship with major banks will ensure that all those requiring a mortgage will be processed with the minimum of delay. Whilst it is not always the case they may from time to time request that specific documentation is officially translated.
The bank is unlikely to undertake a valuation as they only provide a loan linked to purchase price. It is advisable for re-sales to undertake a private valuation for your own protection and benefit.
Term
Terms range from 12 to 25 years. Most banks will want the mortgage paid off by the age of 70.
Costs
Total purchase and finance costs will equate to around 5% of purchase price.
Purchase costs include stamp duty at 1%
Notary fees 0.50%
Registry fees of title deeds 2.5%
Bank charges range from a set fee to 1% of lending.
Each month the government applies a mortgage tax of 10% of your interest payment. The bank takes this and pays it on your behalf automatically and show this as a separate payment on your statements. This 10% must be borne in mind when making payments.
Currency
Loans are granted and are payable in Dirhams. Fixed monthly exchange rates for repayments can be organized through our FX arm.
Underwriting Criteria
Most banks work on net income (after tax) and will look to see that your existing monthly debts and new debts do not exceed between 35% and 40% of net incomes.
Most products are full status although obtaining a mortgage of up to 50% can be possible with a minimum of paperwork. Self certification is currently unavailable but this is set to change.
Benefits of Raising Finance in Morocco
Mortgage not secured against UK or country of residency asset, Loan will not affect ability to borrow in UK or country of residency.
Low interest rates.
There are some differences between the mortgage process in Morocco and Europe and exchange exposure and taxes should be considered before deciding to take a mortgage in Morocco. You should get independent advice before completing on a property to understand all your options.
Standard Non Resident Document Requirements for Moroccan Mortgages:
Employed:
P60
3 Months pay slips
Employer Â’s reference
3 months bank statements
Self Employed:
Self assessment tax return
Accountant Â’s reference
3 months bank statements
Passports
Copy of purchase contract or selling agents slip
Copy of credit file
For all those who intend to purchase their property at Oasis Beach & Golf Resort with the assistance of a mortgage, it is recommended that an application is made as soon as possible. Please email info@oasismorocco.com with your full details including name, home address, details of your Oasis property and the amount of the mortgage that you wish to obtain. We will then arrange for an application form to be sent to you from Morocco for your completion.