How much will my mortgage cost me in Morocco ?

When considering taking out a mortgage, it is crucial to take into account all associated costs. Like any major financial undertaking, a mortgage can hold surprises and hidden fees that can impact your budget. Understanding the total cost of the mortgage and being aware of the various fees involved is essential for making informed decisions and avoiding unpleasant surprises along the way.

So, put on your financial detective hat and get ready to uncover all the mysteries of this real estate quest!

The cost of a mortgage : A financial adventure with hidden fees

Before you embark on this journey, it is essential to understand the total cost of a mortgage and be aware of the hidden fees that can sneak into your path.

What is the cost of a mortgage ?

The cost of a mortgage is a bit like the price of a grand financial adventure in the world of real estate. It is the overall amount you will have to pay to borrow money and fulfill your dream of having your own home.

While a mortgage can be exciting and grant you access to your own "home sweet home," it is important to keep in mind that this cost is a serious financial reality and should be managed with caution.

So, stay vigilant, calculate your options carefully, and make sure to find the best deal to keep your quest for the ideal home a profitable adventure!

So, it's best to know what to expect, right?

Hidden fees in your mortgage

Just like in any good game, there are rules to follow and fees to consider:

1. Interest : These are additional costs that you must repay to the bank on top of the borrowed amount. Interest is generally calculated based on the interest rate applied to the loan.
2. Bank fees : Banks may charge various fees such as application fees, security fees, brokerage fees, and management fees. These fees can vary from one bank to another and can significantly influence the total cost of the mortgage.

1. Additional costs: There may be other costs associated with the mortgage, such as notary fees, property valuation fees, security fees, and guarantee fees. These costs depend on the specifics of each real estate transaction and should be taken into account to assess the total cost of the mortgage.

How much will my mortgage cost me in Morocco?

Calculating the cost of taking out a mortgage will allow you to compare different offers from banks and make the most advantageous choice. Hang in there; we're going to do some math! Don't worry; it's nothing too complicated.

Components of the cost of a mortgage

The "cost of borrowing" for your mortgage corresponds to the difference between the amount spent and the amount borrowed:

Cost of the mortgage = amount spent - loan amount

The loan amount is simply the amount you request from the bank. The amount spent includes several accumulated fees:

Amount spent = sum of monthly payments + application fees + insurance fees + additional fees

With:

• Application fees = 0.1% of the loan amount (maximum)
• Insurance fees = 2.5% to 3.5% of the loan amount
• Monthly payment: the amount you pay each month for the duration of your loan.

Let's take a concrete example:

You want to borrow 800,000 dirhams (loan amount) for 25 years, which is 300 months. The insurance fee is set at 3% of the loan amount, and you borrow at a fixed annual rate of 4.2%.

Application fees are 800 dirhams. You will pay 4,502 dirhams per month, including insurance. (Check our monthly payment calculator for more information.)

In total, you will have paid 4,502 dirhams for 300 months (repayment of the loan amount, including insurance and interest), plus application fees, totaling:

4,502 x 300 + 800 = 1,351,557 dirhams.

So, your mortgage will have cost you ⇾ 551,557 dirhams = 1,351,557 (amount spent) - 800,000 (loan amount).

Conclusion:

There you have it; you have now explored the intricacies of the cost of a mortgage! You have become a true expert in hidden fees and financial pitfalls that can arise during this adventure. You now know that it is essential to consider all elements that influence the overall cost of your mortgage, from interest to additional fees, including bank fees and mortgage insurance.

So, whether you are on the verge of becoming a homeowner for the first time or considering refinancing your current mortgage, equip yourself with knowledge, caution, and a dash of enjoyment in this financial adventure. After all, achieving your "home sweet home" is well worth the extra effort!