Mortgage in Egypt
Exciting Changes to Egyptian Mortgage Financing
The Egyptian Government is committed to improving real estate industry and housing systems in Egypt by establishing an efficient mortgage market following international best practices.
Key developments include:
· The establishment of the Mortgage Finance Authority (MFA) to regulate the market and ensure consumer education and protection. Read more about the MFA.
· The success of two mortgage finance companies: the Egyptian Housing Finance Corporation and El Taamir Company. Both of these companies have efficiently processed Mortgage loans, earning sound reputations. Read more about these companies.
· The creation of the Guarantee and Subsidy Fund (GSF) in 2003. The GSF expands opportunities for affordable housing to low-income households by providing subsidies. Read more about the GSF.
· A major overhaul of the previously complicated and expensive property registration system. In 2004, registration fees were reduced from 12% to 3%.
· Currently the government is considering a reduced fee for registration capped at a maximum of LE 2000. Read more about the registration process.
· The Central Bank of Egypt encourages banks to engage in mortgage lending up to a maximum of 5% of their loan portfolios.
To learn more about improvements in the mortgage financing industry in Egypt and how YOU as a consumer or a real estate or financing professional can benefit, explore our website. To get started, click on a link below:
How to Own Your Own Home with Mortgage Financing?
Real Estate Law & Executive Regulations & Decrees
Mortgage Calculator
Glossary of Terms
Egypt’s Economic Upturn
The Egyptian economy has been relatively stable since the early 1990s, and has been steadily improving since 2004. Oil and gas revenues in particular have been growing due to higher prices and increased production. The government’s pro-reform stance has resulted in many recent improvements signaling progress:
· Reforming trade, taxes, and subsidies
· Restructuring the financial system
· Privatizing most state companies
· Modernizing the fiscal accounts
· Strengthening monetary policy
· Holding the first multi candidate presidential elections
Credit and Risk Ratings for Egypt:
· Standard and Poor’s: Stable
· Moody’s: Limited risk of Default
· Fitch Ratings: Stable
The Real Estate Market: A Need for Effective Mortgage Financing
The Egyptian real estate market has begun to take off in the wake of economic advances of the country. Homebuilders are stretched to meet demand driven by higher levels of disposable income and lower interest rates. Egypt requires 350,000 new affordable housing units per year, but only constructs 200,000. |