State-backed loans and preferential interest rates: Lekjaa answers housing aid questions

Many questions have circulated since the government’s announcement of a direct housing acquisition aid pledged for 2023, which Faouzi Lakjaa, Minister Delegate in charge of the budget, promised will improve citizens’ access to housing.

While answering questions in Parliament on Wednesday, the official stated that the Ministry of National Territory Preparation, Urbanization, Housing and City Policy is preparing an organizational text that defines the forms of housing aid and the methods of granting it.”

He pointed out that the government will grant those wishing to purchase a main residence for the first time direct financial support, which will be determined according to a regulatory text, highlighting that the latter will take into account the disparity in real estate prices between cities.

In addition to providing direct financial support, the government will determine the interest rate that homeowners who borrow from banks will pay, indicating that the state will bear part of the said interest rate.

“The citizen will benefit more from the current situation and in better conditions, and there is no need for concern.”

The Finance Bill established three conditions for benefiting from housing subsidies. The first is that the acquirer is a Moroccan national that has yet to benefit from housing state concessions,  and that he is not the owner at the date of acquisition of a property intended for housing.

The second stipulates the conclusion of the promise to sell and the final sale contract with a notary, while the third condition requires that the final contract include the commitment of the acquirer to allocate housing to be his main residence for a period of four years, starting from the date of concluding the final contract.

The government imposed on the owner of housing wishing to obtain subsidies to place with the state an official mortgage of the first or second class as a guarantee for the recovery of the granted subsidy in the event of his breach of commitment.