Today Morocco
JUNE 27, 2023
Higher debt rates are not systematic and may be the result of specific situations.
Ready : Afdal.ma evaluates the debt ratio in real estate in a recent analysis. To obtain a mortgage loan, the debt ratio is a central element. "While there are differences in assessment depending on the situation, banks generally consider that it is unreasonable to get into debt beyond 45 to 50% of one's income," as Afdal.ma explains. It appears that the simulations carried out highlight an average debt ratio of 3% (before the mortgage loan) in 2023 and it can reach 34% in certain cases.
The debt ratio is an important indicator that helps determine a person's ability to pay off their debts. Generally, banks consider it unreasonable to get into debt beyond 45 to 50% of one's income. However, this threshold can vary depending on the circumstances.
According to Afdal.ma, Moroccan borrowers have apparently integrated these fundamental elements to build a solid file. "Thus, it emerges from the simulations carried out by the comparator Afdal.ma that candidates for home ownership engage in the financing process with a very low debt rate to have every chance of obtaining an agreement," notes the same source. The average in 2023 stands at 3% with a maximum rate of 34%. "The two indicators are respectively stable and in sharp decline compared to 2021 and 2022," indicates the same analysis. For the category of incomes below 5,000 DH, the average debt rate is 1% at the same level as the last two years.
It also turns out that the highest level recorded in this bracket is 20% since the beginning of the year against more than 30% the two previous years. "The debt rate changes according to the level of income without reaching 10%", specifies the same source. In the income category between 5,000 DH and 20,000 DH, this rate comes to 3% and doubles to 6% for those who earn between 20,000 DH and 50,000 DH with for the latter a maximum rate of 30%. Afdal.ma also explains that the maximums indicated have significantly decreased compared to the last two years.
"The highest debt rates are not systematic and can be the result of specific situations. On the debt rate, there are no rules set in stone, each establishment having its own policy.
While some banks adopt a gross assessment of the debt ratio (i.e. between 45 and 50% of income), others have an approach based on the remaining income per person in the household, in other words the remaining income to live on. In this case, depending on the composition of the household (3, 4 or 5 people for example), an identical debt ratio will not be assessed in the same way", concludes the same analysis.
