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Mortgages
For more information please email: mortgage@easymoroccoproperty.com
Easy Morocco Property work with only the best suppliers of finance in order to provide our clients with the best service we can. Our contacts with several very serious Moroccan lenders who are very interested in offering great Moroccan Mortgage deals to non-resident buyers.
The type of mortgages they can offer for Moroccan properties are as follows:
- Off Plan: They can provide an offer in principal that will give the client peace of mind in knowing that when his or her property is ready, the mortgage will be in place. (Subject to status)
- Re-sale: They offer resale mortgages at 70% of purchase price at a rate around 6.32% for a maximum of 25 years. There is no interest only period in Morocco but lenders can offer differed payment for up to 12 months.
- Re-finance: Some of our Spanish lenders are developing a product based on re-financing your actual Spanish or UK property in order to free some funds to purchase your Moroccan property.
- Purchasing as a Company: This option is available and many clients find it tax efficient.
- Purchasing as Moroccan national: This is an option for the Moroccan national who lives abroad. Even as non-resident you will be able to get a 100% mortgage to purchase price.
- Islamic Mortgage: This is a product available only to client from an Islamic faith. This loan is similar to an interest only mortgage with a view to pay off the total capital amount at the end of the mortgage term.
- Interest only mortgages: Up to a maximum of three years (details to be finalised)
- Renovation Mortgage: The lender will add renovation costs to a mortgage. (details to be finalised)
- Stage Payment Mortgage: This will be ideal for Off-plan buyers and Developers (details to be finalised)
To summarise, the terms and conditions to apply for a Moroccan Mortgage are as follows:
- Level of loan up to 70% of the declared purchase price
- An interest rate of between 6.32 to 7.05%
- There is no maximum limit of borrowing as long as it does not exceed the 40% limit of level of debts
- A mortgage term of up to 25 years
- An age limit of 65/70 years old
- A possible differed payment period between 3 to 12 months subject to status
- Documents required will be (original copies required):
- Certified copies of applicants passports
- Proof of earnings – 3 latest payslips, renting incomes, etc
- A declaration of debts – Experian report from www.experian.com sent to applicant home address
- P60 / Tax return(s)
- Purchase contract of the property
- Latest 3 bank statements of your current bank account
- Bank reference letter
- Property survey
- An applicant can have more than one mortgage with the same bank.
Questions and Answers
Q: Can I purchase several properties and cover them all under one mortgage?
Yes this is possible in Morocco as long as you have enough earnings to allow repayments and that it is covered under your 40% loan to debt ratio.
Q: What is the maximum length for a mortgage in Morocco?
25 years
Q: Can I re-mortgage my property?
Re-mortgaging is something which Moroccan lenders do not usually offer. Instead they will offer a separate loan for additional work on the property, but the initial mortgage does not get changed. However it is important to note that Morocco is developing its mortgage products all the time so this is likely to be something which is available soon.
Q: What is the situation with transferring money out of Morocco?
There is no problem in transferring money out of Morocco as long as all taxes have been paid. If it is regarding the transfer of money from earnings from properties, this is legal but it has to be declared and tax paid.
Q: Do I have to pay Capital Gains Tax on my property when I sell it?
If the property is sold within five years, capital gains tax is charged at 20% of profit with a minimum of 3% of the sale price. A property sold between six and ten years of ownership will pay 10% capital gains tax and 0% thereafter. Capital gains tax is based on the sale price less the purchase price.
Q: How long does it take to set up 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.
Q: How much tax will I have to pay on my rental Income?
Investors from the UK looking to operate a buy-to-let strategy with their Morocco based property investment will be required to pay tax on this generated income. The first three years can be exempt of tax, but afterwards investors must pay tax on 60% of their generated income at levels between 22% and 44%.
If investors do not live in the property at all, a tax of 13.50% on the rental value is levied.
Q: What is the situation with inheritance Tax?
There is 0% inheritance tax for family members, but it is essential to make a legal Moroccan will and seek professional tax advice beforehand.
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