New Mortgage Finance Initiative

A Great Way to Facilitate Property Ownership in Egypt

October, 2022

    /BLOG/Buying and Selling Your Home

With the country’s focused determination on providing adequate housing for all Egyptians. The Mortgage Finance Law was issued to help all potential property buyers. Upon instructions from President Abdel Fattah El-Sisi, The Central Bank of Egypt launched the New Mortgage Finance Initiative in 2021; with an interest rate of 3% and 8%, hence paving the road for middle-class citizens to easily own properties in Egypt


Mortgage Finance Entities in Egypt


There are many mortgage financing entities in Egypt. Some of these mortgage finance companies are under the supervision of the Financial Regulatory Authority, and banks that are under the supervision of the Central Bank of Egypt.


mortgage finance fund

The New Mortgage Finance Initiative with an Interest Rate of 3%


The mortgage initiative with the 3% diminishing interest rate only finances fully constructed and finished residential units. Unit price can be paid in installments over 30 years. This is possibly the longest payment period ever.


In this new initiative, only fully-constructed and finished residential units are financed. In addition to that, the diminishing interest rate of the units has been set to be 3%, and the unit price can be paid in installments over 30 years, which is possibly the longest payment period ever.


Among the conditions of this new initiative:

• An applicant’s age should not exceed the retirement age. As for pensioners, they can also be financed as long as they don’t exceed the age of 75 by the end of the financing period.


• The maximum monthly income should be EGP 10,000 for a single person and EGP 14,000 for a household. The total monthly installments mustn’t exceed 40% of the total monthly income.


• The unit price mustn’t exceed EGP 1.4 million.


• If the unit price does not exceed EGP 1.1 million, then 15% of the total value is to be paid as a down payment. If the unit value exceeds this amount, then 20% of the total value is to be paid as a down payment.


The New Mortgage Finance Initiative with an Interest Rate of 8%


The mortgage initiative with the 8% diminishing interest rate only finances fully constructed and finished residential units. Unit price can be paid in installments over 20 years.


Among the conditions of this new initiative:

• An applicant’s age should range from 21 to 60 years at the end of the financing period.


• The maximum monthly income for a single person should be EGP 40,000 and EGP 50,000 for a household. The total monthly installments mustn’t exceed 40% of the total monthly income.


• The unit value mustn’t exceed EGP 2.5 million.


• 20% of the unit value is to be paid as a down payment, and the maximum funding amount is 80% of the unit value.


A Comparison between the New Initiative of Interest rate 3% and 8%


New Initiative of Interest Rate 3% New Initiative of Interest Rate 8%
Interest Rate 3% 8%
Installment Period 30 years 20 years
Applicant’s Age • Must not exceed the retirement age
• Pensioners: financed under the condition of not exceeding 75 years at the end of the financing period.
• Must range from 21 to 60 years at the end of the financing period.
Maximum Monthly Income • EGP 10,000 for a single person
• EGP 14,000 for a household
• EGP 40,000 for a single person
• EGP 50,000 for a household
Maximum Unit Value • EGP 1.4 million • EGP 2.5 million
Down payment • 15% : Unit value below 1.1 Million
• 20%: Unit value exceeds 1.1 Million
• 20% of unit value

New Mortgage Finance Initiative

Egypt launched many initiatives to facilitate property ownership. Among them is the New Mortgage Finance Initiative of interest rates 3% and 8%. If you need any consultations regarding mortgage finance, or you want to buy a property with the new mortgage finance initiative, contact RE/MAX Egypt’s experts by calling 16088 or contact us here.