Buyback after BAM key rate decrease
For whom?: Any borrower with mortgage > 500K MAD contracted before last BAM decrease — Average gain: −0.3 to −0.8 pt on rate
Bank Al-Maghrib adjusts key rate (2.25-3% in 2026) several times per decade. Each 0.25 pt decrease opens credit buyback window: you can renegotiate with current bank or switch to competition. Simple calculation: if current rate is 0.5+ pt above market rate, buyback profitable.
When it's relevant
Relevant if: current vs market rate gap > 0.5 pt, remaining capital > 300K MAD, remaining duration > 8 years. Rule of 3: annual gain × remaining duration > total buyback fees.
How it works
Request payoff letter from current bank (free). Obtain 2-3 buyback quotes from other banks. Negotiate rate (average gap obtained: −0.3 to −0.5 pt). Verify IRA (3% legal max but often negotiable). Sign at notary with new mortgage.
Concrete example
Mortgage contracted 2020: 900K MAD over 20 years at 5.2%. Remaining 2026: 780K MAD. Market rate 2026: 4.3%. Buyback 780K over 14 years at 4.3%: rate savings = 0.9 pt × 780K × 14 / 2 ≈ 49,000 MAD net after buyback fees (10-12K).
Advantages
- Immediate and automatic savings (lower rate)
- Option to keep remaining duration (less total debt)
- Or extend duration to free monthly cash
- Can negotiate death insurance simultaneously (−30% possible)
Points of attention
- IRA 3% maximum (definitely negotiate to 1-2%)
- New bank file fees (1-1.5%)
- Mortgage release + re-registration fees (1-1.5%)
- Don't buyback if less than 5 years left: gain < fees
Documents to prepare
- Current bank payoff letter (written request)
- Current amortization schedule
- Last 3 payslips + tax notice
- Property title
- Real estate appraisal (sometimes required)
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