New apartment (off-plan) credit
Credit for new off-plan apartment (VEFA - Sale in Future State of Completion) is most popular option for first-time buyers in Morocco. Advantage: lower price than existing + 5-year housing tax exemption. Developers often sign agreements with several banks.
Key characteristics
Amount
300-3,000K MAD
Average rate
4%
Duration
15-25 ans
Down payment
20-30%
Specifics of this credit type
Funds release staggered per site progress (foundations 20%, major works 40%, finishing works 30%, delivery 10%). During this period, you only pay intermediate interest (typically 1 to 3% of released capital).
Eligibility
Stable income (permanent contract/civil servant preferred), age 25-55 for 25-year loan, minimum 20% down payment, no excessive debt. Some developers accept more complex profiles (auto-entrepreneurs, freelancers) via specific agreements.
Step-by-step process
- 1Sign reservation contract with developer (5-10% of price)
- 2Request bank agreement in principle (free, valid 3 months)
- 3Sign final sale contract at notary
- 4Submit complete file to bank (2-4 weeks study)
- 5Sign loan contract and staggered release
2026 taxation
5-year housing tax exemption for new housing. Registration duties reduced to 4% if social housing (< 1M MAD) vs 6% standard housing. Loan interest not IR-deductible in Morocco (vs France).
Mistakes to avoid
- Underestimating annex fees (notary, registration, mortgage) = 9% of price
- Choosing developer without Damane guarantee (delivery default risk)
- Accepting credit-linked death insurance without comparison (−30-50% possible)
- Not negotiating rate (minimum 0.3-0.5 pt negotiation)
Additional costs
Total budget to plan: price + 9% (6% duties + 1.5% notary + 1.5% land conservation) + mortgage fees ≈ 1.5% + death insurance 0.3-0.5% of capital per year.
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