Borrowing capacity: how much can you borrow to buy a home in Morocco?

1. The debt ratio: the 40% rule

In Morocco, banks generally cap the monthly repayment of all your loans at about 40% of your net monthly income. With a net income of MAD 15,000, the maximum repayment is therefore around MAD 6,000, including any existing loans.

2. The loan term

Mortgages are usually granted over 15 to 25 years. A longer term lowers the monthly payment but increases the total interest paid. Your age at the end of the loan is also taken into account.

3. A worked example

With a MAD 6,000 monthly payment at 4.5% a year over 25 years, the loan formula gives a capital of about MAD 1,080,000. Over 20 years at the same rate it drops to about MAD 950,000. Mandatory death and disability insurance is added to the payment.

These figures are an order of magnitude: the actual rate depends on your profile, your down payment and the bank.

4. Down payment

Most banks expect your own contribution to cover at least the purchase costs (registration duties, land registry, notary) and often part of the price. A larger down payment gets you a better rate.

5. Schemes that can help

• Direct housing aid for buying a main residence, under conditions (see our dedicated article).
• The Damane Assakane guarantee, which helps households with modest or irregular income obtain a loan.

Our tips

• Compare several banks: a few tenths of a percentage point add up to tens of thousands of dirhams over 20 years.
• Pay off small existing loans before applying if you can.
• Keep a margin: a comfortable payment is better than a maxed-out budget.

Once you know your budget, use Immofind's price filters to see only the properties that fit it.