Down payment for a mortgage in Morocco

Understanding the down payment

The down payment is the amount of money you contribute directly to your property project, on top of the bank loan. It is a fundamental element of your loan application.

What is a down payment?

It is the share of the property price that you finance with your own resources, without borrowing. It can come from savings, family gifts, inheritance, or the sale of an existing asset.

What counts as a down payment

Personal savings
Family contribution (gifts, family loans)
Proceeds from the sale of an asset
Housing savings (where applicable)

Why does the down payment matter?

For the bank:

Reduces the bank's risk
Demonstrates your ability to save
Proves your commitment to the project
Improves your borrower profile

For you:

Reduces the amount borrowed
Lowers the interest paid
Improves the loan terms
Increases your chances of being approved

How much down payment to plan for

In Morocco, banks generally require a minimum down payment that varies depending on several factors.

Requirements of Moroccan banks

Moroccan banks generally ask for a down payment between 20% and 30% of the total property price. This percentage can vary depending on:

Property-related factors:

Type of property (new, existing, off-plan)
Location (urban or rural area)
Property value
Property condition (renovation needs)

Borrower-related factors:

Job stability
Income level
Credit history
Status (resident or Moroccan abroad)

Recommended split

Situation	Minimum down payment	Ideal down payment	Bank financing
New property	20%	25–30%	70–80%
Existing property	25%	30–35%	65–75%
Off-plan (VEFA)*	20%	25–30%	70–80%
Property with renovation	30%	35–40%	60–70%
Second home	30%	35–40%	60–70%

VEFA: Sale in Future State of Completion (off-plan purchase)

Good to know: A higher down payment can let you negotiate a better interest rate. For example, with a 40% down payment instead of 20%, you could obtain a rate reduction of 0.2% to 0.5% depending on the bank.

How to build your down payment

Building a sufficient down payment is often a challenge for future buyers. Here are several strategies to get there.

Saving strategies

Programmed savings: set up automatic monthly transfers to a dedicated account
Savings account: prefer fee-free accounts with limited access to avoid temptation
Secure investments: term deposits, savings bonds, or fixed-rate savings accounts
Cutting expenses: set a strict budget and track your spending

Alternative sources

Family help: gifts or family loans (formalize with a deed)
Advance on inheritance: possible with the donors' agreement
Releasing retirement savings: under certain conditions
Asset sales: real estate, vehicles, financial investments

A 3-year savings plan

Here is an example savings plan to build a 300,000 MAD down payment over 3 years:

Year	Monthly savings	Annual savings	Cumulative	Strategy
Year 1	6,000 MAD	72,000 MAD	72,000 MAD	Cut expenses + savings account
Year 2	7,500 MAD	90,000 MAD	162,000 MAD	Income increase + secure investment
Year 3	8,000 MAD	96,000 MAD	258,000 MAD	Tax optimization + bonus savings
Family contribution	–	50,000 MAD	308,000 MAD	Formalized family gift

This plan is indicative and should be adapted to your personal situation and savings capacity.

Tips and recommendations

For residents in Morocco

Study tax benefits: some investments may offer tax reductions
Negotiate a bonus: discuss a one-time bonus with your employer
Monetize assets: rent out a property, sell non-essential assets
Start a side activity: generate temporary additional income

For Moroccans abroad (MRE)

Take advantage of exchange rates: monitor fluctuations to transfer at the best moment
Use special MRE accounts: they often offer specific benefits
Explore dedicated offers: some banks offer preferential terms
Prepare your documentation: translated and certified documents for foreign income

Mistakes to avoid

Underestimating ancillary costs: include notary fees (about 5–7% of the price), agency fees and any renovation work in your down payment.
Borrowing to build the down payment: taking out a consumer loan to finance your down payment is generally viewed unfavorably by banks.
Emptying all your savings: keep an emergency fund to handle unexpected expenses after the purchase.
Neglecting the traceability of funds: make sure you can justify the origin of your down payment (bank statements, notarial deeds for gifts).

Important: If you receive a family gift to build your down payment, it is strongly recommended to formalize it with a notarial deed. This will avoid later complications and make justification easier with the bank.