CBE Launches EGP 100 Bln Mortgage Initiative for Low, Middle-income Citizens

The Central Bank of Egypt (CBE) launched a real estate financing initiative, allocating EGP 100 billion through banks or real estate finance companies to finance moratges for low and middle-income citizens at a low interest rate of 3% for a period of up to 30 years.

The CBE stated in a statement on Tuesday that the initiative applies to low-income citizens, whose income accounts to EGP 4,000 for a single inpidual or EGP 6,000 for a household, adding that they can receive a mortgage on a residential unit with the value of EGP 350,000 with a 10% down payment.

The middle-income beneficiaries, with a net monthly income of EGP 10,000 for a single inpidual and EGP 14,000 for household, can acquire a mortgage for a residential unit of up to EGP 1.1 million in value, with a 15% down payment, and with a minimum of 20% down payment for units with a value of not more than EGP 1.4 million.

The initiative requires that the beneficiary be Egyptian, self-employed, craftsmen and people with special needs, who have income and pensioners to benefit from the initiative. The age should not exceed 75 years at the end of the financing period, provided that the units are for permanent housing only, not seasonal.

This comes with the aim of achieving societal justice and providing the opportunity for all citizens to benefit from the real estate financing initiatives offered by the state, which would help provide adequate housing and a decent life for low-income citizens who wish to own housing units.