The Central Bank of Egypt (CBE) launched an initiative of EGP 100 billion in mortgage finance for low and middle-income citizens on Tuesday.
According to the circular published on the CBE’s website, these individuals will have access to loans from banks and mortgage companies with a decreased interest rate of 3 percent and a 30-year repayment period in order to purchase only fully finished housing units.
For low-income individuals, the circular stated that from the conditions to be available on any applicant is that their maximum net monthly income must not exceed EGP 4500 for the unmarried and EGP 6000 for those looking after their household. In addition, they must have 10 percent of the housing unit’s price, which must not exceed EGP 350,000, paid as a down payment.
As for the middle-income applicants for the initiative, the unmarried applicant’s income should not exceed EGP 10,000 and EGP 14,000 for those managing households. The down payments are 15-20 percent if the housing unit ranges between EGP 1.1 million and EGP 1.4 million, respectively.
The circular also stated that from the conditions that should apply on applicants is that they must be of Egyptian nationality and acknowledge that the unit is only for permanent residence. Freelancers are also welcome to apply for this loan as long as they are reviewed according to some variants such as the stability of their income, age, regular bill payments, reputation and commitment to their career and if they house family members.
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