Mortgages in Morocco: The 15 Questions I Get Asked at the Agency

Fifteen years showing apartments in Tangier, Casablanca and Rabat, and the conversation almost never starts with the price. It starts with the bank: "Will they give me the loan?", "How much can I borrow?", "What if I live abroad?".

Today I'll answer the fifteen questions I hear most often at the agency, using the numbers published by Bank Al-Maghrib and the Exchange Office in 2026. No bank brochures, no fine print.

Three profiles, three paths:

1. •Moroccan resident with steady income: the shortest path. A permanent contract, minimum seniority and a home-domiciled salary open almost every door.
2. •Moroccan living abroad (MRE): Moroccan banks accept income in euros, dollars, pounds sterling, Canadian dollars and UAE dirhams. The down payment must arrive by bank transfer — cash that appears out of nowhere the day before signing sinks any application.
3. •Non-resident foreigner: you can finance the purchase or construction of a property in Morocco in dirhams. The Exchange Office allows it up to 80% of the price (General Instruction on Exchange Transactions, articles 201 to 203). The loan sits in a special dirham account, and the rest of the price is paid with funds brought in from abroad, through the bank.

The legal ceiling is not what you will get. In practice, banks look at your profile and your ability to pay before they look at the property's price:

• •Down payment: the standard is between 20 and 30% of the price. With the Damane Iskan scheme (first-time home access) you can start at 10%. The down payment must be traceable: months of savings, a documented sale or a notarized gift.
• •Debt ratio: the monthly payment cannot exceed 40% of your net income (Bank Al-Maghrib circular), stretched to 45% only for high earners.
• •The appraisal rules: before releasing a single dirham, the bank commissions a mortgage appraisal that you pay for (2,500 to 5,000 MAD). If the appraiser says the flat is worth less than what you are paying, the loan is calculated on that figure and the difference comes out of your pocket.

The central bank has held its key rate at 2.25% since March 2025, but no mortgage is signed at that rate. According to Bank Al-Maghrib's quarterly survey, the average rate on mortgage loans closed the second quarter of 2026 at 5.06%.

The best offers circulating in branches start at 4% (Afdal data reported by Médias24 in June 2026, covering 36,500 offers from ten banks), and the real average rate on first-half deals was 4.64%. On the street, the range you will see this year runs from 4.5 to 5.8% depending on profile, term and bank.

Because the nominal rate is only the headline. The APR adds insurance, fees and set-up costs. In the first half of 2026, the average APR on Moroccan mortgages was 5.49%. And not everyone pays the same:

Source: Afdal barometer, published by Médias24, June 2026. When you compare two offers, always compare the APR — never the rate on the shop window.

Death and disability insurance (ADI) is mandatory on any Moroccan mortgage. It costs between 0.15% and 0.45% per year of the outstanding balance, with an average of 0.40%. It sounds small until you do the math: on a one-million-dirham loan over 25 years, the gap between the cheapest and the most expensive policy is around 65,000 MAD. And there is room to move: the insurance can be delegated to an external insurer, and good negotiation can save you up to 30,000 MAD over the life of the loan.

• •Term: 7 to 25 years as standard, and up to 30 for younger buyers. The best conditions are found between 15 and 20 years.
• •Age: the loan must be fully repaid before you turn 70 (75 at some banks for civil servants).
• •The 40% rule: if your monthly payment exceeds 40% of your net income, the bank tells you before it even opens the file.

And a calculation nobody shows you at the branch. At the average rate of 4.64%, a one-million-dirham loan looks like this:

Stretching the term lowers the payment, yes — but costs about 300,000 MAD more in interest. The decision is yours, with the numbers in front of you.

National ID, work certificate less than 3 months old, your last 3 payslips, bank statements from the last 3 to 6 months, a signed purchase agreement and proof of the down payment. If you are an MRE, add translated payslips in foreign currency, the tax return from your country of residence and proof of non-tax-residence in Morocco. And before handing anything over: always sign the purchase agreement with a financing condition, or you risk losing the deposit if the bank says no.

A riad inside the medina is an urban property: it is financed like any home. Farmland in a rural area is a different story: Moroccan law (dahir of 23 April 1975) prohibits foreigners from acquiring agricultural land outside the urban perimeter. If you dream of a riad in Marrakech, check our city guide; if you are after land, check its zoning carefully before signing anything.

Two rules that resolve 90% of the questions from my clients who live abroad. First: the down payment comes in through the bank, with a justified origin — the Exchange Office demands traceability. Second: if you sell and you are a non-resident, banks are authorized to transfer the net sale proceeds abroad upon presentation of the transaction documents (General Instruction on Exchange Transactions, article 177). The money does not stay stuck.

1. •Can a non-resident foreigner finance the purchase? Yes. Up to 80% of the price in dirhams, with the rest brought in from abroad. The loan sits in a special dirham account.
2. •What about a Moroccan living abroad (MRE)? The same framework, with a normal dirham account. Banks accept income in EUR, USD, GBP, CAD and AED, and require the down payment to arrive by bank transfer.
3. •How much will they really lend me? With a 20-30% down payment and a monthly payment below 40% of your net income, standard financing covers 70-80% of the price. The appraisal can cut it down.
4. •What does money cost today? Average rate on mortgage loans: 5.06% (Bank Al-Maghrib, second quarter 2026). Best offers from 4%. Real range: 4.5-5.8%.
5. •Fixed or variable? Fixed: 5.2-5.8%, stable payments. Indexed variable: 4.5-5.2%, revised every year. Mixed: fixed for the first years, variable after.
6. •What is the APR? The total cost of the loan with insurance and fees included. Market average: 5.49%. It is the only thing that serves to compare offers.
7. •Is the ADI mandatory? Yes. Between 0.15% and 0.45% per year, average 0.40%. It can be delegated to an external insurer.
8. •How many years do they give me? From 7 to 25 years (30 for younger buyers). The loan must end before you turn 70.
9. •How long does the bank take to answer? Agreement in principle within 72 hours to 10 days; final approval, after the appraisal, in 3 to 6 weeks.
10. •What paperwork do I prepare? National ID, work certificate, 3 payslips, statements from 3-6 months, a signed agreement and proof of the down payment. MRE: translations and proof of non-tax-residence.
11. •Does the mortgage cover the purchase costs? No. Registration, notary and fees are paid on top of the loan. We break them down to the cent in this article.
12. •Can I repay early? Yes. The early repayment fee is capped at 2% of the outstanding balance and is negotiable.
13. •Can I apply with my partner? Yes, and it adds income to the file. The co-borrower is jointly liable.
14. •What if I stop paying? The property is mortgaged to the bank from day one and non-payment can end in foreclosure. Before it gets there, the bank prefers to renegotiate the term.
15. •Can I buy a riad or a plot of land? Urban riad: yes, financed like a home. Farmland in a rural area: prohibited for foreigners (dahir of 1975).

If you already know what you want to buy, start with the property catalogue or check how the Tangier market is doing, the city where I have handled the most MRE and foreign mortgage files in these fifteen years.