Renovation & works credit credit
Renovation credit finances improvement works on your existing home: kitchen, bathroom, extension, insulation, painting. Shorter duration (5-15 years), down payment not always required if amount reasonable vs property value.
Key characteristics
Amount
50-800K MAD
Average rate
5.5%
Duration
5-15 ans
Down payment
0-20%
Specifics of this credit type
Two possible formats: 1) Amendment to existing mortgage (more advantageous, 4.5-5% rate), 2) Works-allocated consumer credit (5.5-7% rate). Bank may require detailed quotes from qualified craftsmen and expense tracking.
Eligibility
Owner of home to renovate. Simpler file than mortgage (fewer documents, no mortgage if consumer credit). Employment seniority > 1 year. Repayment capacity verified.
Step-by-step process
- 1Obtain 2-3 detailed quotes from qualified craftsmen
- 2Choose between amendment to existing credit or new works credit
- 3Submit file to bank (1-2 weeks study)
- 4Sign contract and receive funds (progressive disbursement possible)
- 5Provide invoices as works progress
2026 taxation
Improvement works add value to property, reducing taxable capital gain at resale (if sold). Keep all original invoices 10 years for TPI deduction.
Mistakes to avoid
- Underestimating budget (plan +20-30% margin for contingencies)
- Choosing cheapest quote without verifying craftsman references
- Not declaring works to municipality if extension or structural modification
- Forgetting to update home insurance after works
Additional costs
No registration fees on works consumer credit. File fees 500-2,500 MAD. Optional death insurance (0.2-0.4% of capital/year).
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