1. What is a mortgage valuation?
A mortgage valuation is an independent appraisal of a property commissioned by either the buyer or the bank before loan underwriting. The bank uses it to set the LTV (loan-to-value ratio) and size the loan. The valuation is mandatory for all Moroccan mortgage loans above 500 000 MAD.
2. Methodology
Our reports follow the RICS Red Book and specifically VPGA 2 — Valuation for secured lending. This dedicated guidance requires:
- Market Value (VPS 4) — the primary basis of value
- Mortgage Lending Value (MLV) — a prudent long-term value on request (used by EU banks)
- Two approaches minimum — market comparison + income if leased + cost if specialised
- Identification of the lender (bank), the borrower, the property, and the loan purpose
- Suitability for lending statement — the property's liquidity, marketability, condition
- Assumptions about tenancy (vacant possession assumed unless otherwise stated)
3. Which banks accept our reports?
All seven main Moroccan banks accept our reports without reservation:
- CIH Bank — the real estate specialist
- Attijariwafa Bank
- Bank of Africa (BMCE)
- BMCI (BNP Paribas group)
- Société Générale Maroc
- Banque Populaire
- Crédit du Maroc
4. Cost & turnaround
- Residential apartment — 2 500 to 5 000 MAD · 5-8 business days
- Villa / house — 5 000 to 10 000 MAD · 5-8 business days
- Commercial / office — 4 000 to 10 000 MAD · 7-10 business days
- Industrial / complex — 10 000 to 25 000 MAD · 10-15 business days
- Rush 48h — +30 to 50 % surcharge
5. Typical LTV outcomes
LTV (loan-to-value) depends on borrower profile, asset liquidity and risk assessment in the report:
- Prime residential, senior salaried borrower — up to 90 %
- Mid-range residential, salaried borrower — 70-80 %
- Self-employed — 60-70 %
- MRE / non-resident — 70-80 % (CIH) / 50-70 % (most banks)
- Investment property (buy-to-let) — 60-70 %
- Commercial / tertiary — 50-65 %
- Industrial / specialised — 40-55 %
6. What's in the report?
- Executive summary (1 page) — headline value, key risks, LTV recommendation
- Property description — location, legal status, surface, condition
- Market analysis — submarket dynamics, buyer pool, liquidity
- Two valuation approaches with comparables (5-10 recent transactions)
- Reconciliation and Market Value conclusion
- Mortgage suitability assessment
- Annexes — ANCFCC title, cadastral plan, photos, urbanism note
FAQ
Can I choose my own appraiser?
Yes — in Morocco the buyer usually commissions and pays the valuation. The bank accepts any RICS-regulated appraiser. Some banks have panels, but independent RICS reports are accepted throughout.
What if the valuation comes in below the purchase price?
The bank sizes the loan based on valuation, not purchase price. A gap may force you to add equity. Negotiate with the seller or renegotiate price with the valuation as evidence.
How long is a mortgage valuation valid?
Typically 6 months. For refinancing, banks often require a fresh valuation if > 12 months old. For VEFA, valuations at signature may need refresh at delivery.
Do I need a valuation if I'm buying with cash?
Not legally required, but strongly recommended. A RICS report protects you from overpaying, documents your acquisition basis for future TPI calculation, and establishes IFRS 13 fair value if you're a corporate.
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