Egypt's central bank amends terms of 8% real estate mortgage initiative

CAIRO – 4 October 2021: The Central Bank of Egypt (CBE) announced Monday the amendment of some conditions of the real estate mortgage initiative for middle-income people issued in December 2019, according to which an amount of LE 50 billion pounds was allocated to provide real estate mortgage for citizens whose monthly income reaches LE 40,000 for singles and LE 50,000 for the family, at a return rate of 8 percent.

The bank said, in a statement, that the financing period has been increased to 25 years (instead of 20 years), with the possibility of applying this to existing customers benefiting from the initiative.

It added that it was also decided to abolish the condition of the maximum net area of ​​the unit, in addition to increasing the maximum unit price to LE 2.5 million, facilitating the terms of guarantees and allowing banks to accept alternative guarantees in case the unit cannot be registered.

The central bank stated that this comes in an effort to increase the number of bankable units within the framework of the initiative, and to benefit a greater number of citizens with the aim of obtaining adequate housing at a low return price.

The CBE stressed that these amendments come as a continuation of the trend towards supporting the real estate sector because of its importance in supporting the economy and advancing production, and given that its advancement is reflected in providing adequate housing in accordance with the needs of citizens.

The bank also pointed to the positive impact of the sector’s advancement on the national product through the operation of many different industries and sectors such as contracting and construction, in addition to its positive impact on the social side by creating job opportunities in various projects and industries.