Consumer + mortgage consolidation
For whom?: Owners with mortgage + 2-3 consumer credits — Average gain: −35 to −50% of total monthly payment
Consumer + mortgage consolidation combines all credits into single mortgage-dominated loan. You benefit from mortgage low rate (4-5%), extended to total debt. Powerful solution if accumulated consumer credits since property purchase.
When it's relevant
Relevant if: owner with active mortgage (seniority > 5 years ideal), consumer rate > 10%, total consumer credits > 100K MAD. Avoid if: no possible mortgage guarantee, LTV already > 80%.
How it works
Bank evaluates property value (appraisal) and residual value vs credits. New loan consolidates mortgage + consumer at mortgage rate (4.2-5.2%) with extended mortgage guarantee. Duration 15-25 years. File fees 1-2% + mortgage fees 1.5%.
Concrete example
Household: 800K mortgage remaining (5.5% rate, 180 months, 7,200/month), + 3 consumer credits 180K cumulated (11% rate, 5,500/month). Total: 12,700 MAD/month. After 980K MAD buyback over 20 years at 4.7%: 6,300 MAD/month. Immediate savings: 6,400 MAD/month (−50%).
Advantages
- Globally halved interest rate (5% vs 11% average)
- Huge long-term gain (50-100K MAD over 20 years)
- Single monthly payment to manage (end of multi-debt stress)
- Ability to subscribe new project eventually
Points of attention
- Extended mortgage: risk of property loss if payment default
- Extended duration: psychological impact of 20-year debt
- IRA on old mortgage if buyback in different bank
- File + mortgage fees 2.5-3% of amount (to amortize)
Documents to prepare
- Property title
- Mortgage + consumer amortization schedules
- Latest payslips and tax notice
- Recent real estate appraisal (or request)
- BAM solvency certificate
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