Mortgage simulation in Morocco: the method for a reliable result

Before visiting a property or meeting a bank, a mortgage simulation tells you what is realistic: what monthly payment, over what term, for what property price. You still need to enter the right data and know how to read the result. This guide explains the method, which you can apply directly with the ABRAJ mortgage calculator, which also calculates notary fees.

Data to enter

The monthly payment formula

For a fixed-rate loan, the monthly payment excluding insurance is: M = C × t ÷ (1 − (1 + t)^−n), where C is the amount borrowed, t the monthly rate (annual rate divided by 12) and n the number of payments. A calculator does this for you; what matters is understanding that the payment falls as the term lengthens, while the total interest cost rises. See loan term and the amortisation table.

From monthly payment to budget

Banks generally use a debt ratio of around 40% of net income, existing loans included, and look at what is left to live on. Start from your comfortable maximum payment, derive the amount you can borrow, add the down payment, subtract costs: you get the maximum property price. See borrowing capacity and the debt ratio.

Including aid

For an eligible first new home, the Daam Sakane aid (MAD 70,000 or 100,000 depending on the price) reduces the amount to borrow. The Damane Assakane guarantees ease access to credit depending on income. Members of some social-works foundations also have their own schemes, such as IMTILAK.

Reading the result carefully

• A simulation is not an offer: the bank also studies your profile and the property.
• Test a cautious scenario (higher rate, income without bonuses).
• Keep a safety reserve after buying.
• Compare offers on their total cost and APR, not just the monthly payment. See the total cost of a loan.

After the simulation

Ask several banks for an agreement in principle, then look for properties within the budget obtained. With that budget in hand, you will negotiate with more confidence.

A simple example

With MAD 12,000 of net monthly income and no other loan, a maximum payment of around 40% is about MAD 4,800. From that payment, the calculator shows the amount you can borrow for the term and rate entered. Add your down payment, subtract purchase costs: you know the maximum price of the home to look for.

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