Borrowing rates are at their lowest, with 4.10% excluding the flat tax on average in Morocco in May for all terms, Afdal.ma, a real estate loan comparison simulator, points out, noting that behind this drop in rates are hidden several factors, some of which are related to the economic situation International and other current events in the real estate market.
Based on 419 pre-agreements distributed by Afdal.ma in May, real estate prices continued to fall, reduced to 3.9% excluding fixed taxes! Low rates allowed many buyers to access the real estate market. Therefore, the banks did their best to maintain interest rates at this level, which can be explained by several factors: the desire of the central bank not to hold back growth, the need to compensate for the rise in real estate prices, strong competition between banks, etc.
Mortgage loans ranging between 800,000 and 1,500,000 dirhams saw a 0.10% decrease in the flat rate excluding taxes. As for the loans contracted with less than 800 thousand, the interest was finally reduced by 0.03% in constant value excluding taxes. The only downside, even if the borrowing terms are still very attractive: loans in the amount of between 1,500,000 and 3,000,000 dirhams, recorded a slight increase of 0.10% in the flat rate excluding taxes. However, death and disability insurance rates are stagnant at an average of 0.40%, highlighting the overall effective annual rate at a flat average of 4.91%.
Competition among lending institutions intensified at the dawn of the summer period, which partly explains this drop in prices. The drop is often accompanied by promotions to encourage first-time buyers, in particular, to acquire a property even with a limited personal contribution, when they could not afford it a few years ago.
In May 2022, of the 419 prior agreements reached, 414 indicate that the loan term is less than 15 years, and the overall average was 19 years, a decrease that could be a direct result of increased capacity borrowing after the fall. in interest rates.
To counter this reduction, it is important to assume a general reduction in the proportion of credits granted. In fact, there is a significant decrease in the permanent value of the majority of credit tranches, with the exception of those ranging between 1,200,000 and 1,500,000 dirhams and from 2,000,000 to 3,000,000 dirhams. In fact, the permanent value of loans decreased by 37.90% for housing loans of more than 3,000,000 dirhams. Overall, the decline in LTV was recorded by 2.77% between May and April of the year 2022.
The borrowing rates followed today are very competitive, and the awareness of borrowers is growing. They can now compete more easily, leading every bank to want to keep the best offers in the market.