The Mortgage In Egypt2

Mortgages in Egypt The Mortgage authority in Egypt was established in the year 2002. Due to a recent change in Egyptian Mortgage law non-residents now have access to mortgage products in Egypt. In order for the mortgage company to consider a property it has to be registered at the property registry. This registration can be a very long process. A residence visa will be required for a non-resident to purchase a property in Egypt. The visa is fairly simple to obtain and is for a period of either 3 of 5 years When you buy property in Egypt as a foreign investor you have to right to own real estate and land Unfortunately the property registry in Egypt is out of date and incomplete. It’s believed that only 10% of the properties in Egypt are actually registered and this naturally creates problems for property investor. The residence permit will only allow you to purchase a maximum of 2 properties (with a maximum of 4,000sqm between them). Nonresidents wishing to purchase more than 2 properties would need to set up an Egyptian Company. Real estate financing: the mortgage Under the Executive Statutes of the Real Estate Finance law, real estate financing is available for “Investment in purchase, building, repair, or improvement of houses, administrative units, service installations and buildings of stores appropriative for commercial activity”. For non Egyptians: The investor (loan requester) completes the application direct from the company or any branch of housing and development bank, or through any broker registered in The Mortgage Finance authority. General Loan conditions: -

Maximum loan 60% from the appraised value of the property (in some cases the loan amount can reach 80%)

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Monthly installments are for up to 10 years

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The minimum amount of loan that should be taken is 250.000LE (depending on the bank)

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The investor should be less than 65 years old upon payment of the last installment.

Requested documents -

Copy of the identification card (copy of passports is required )

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Salary letter (H.R letter) signed and stamped from the country where you live and it has to be addressed to the mortgage Company

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Any document that proves any other income.

Documents required for completed units -

Copy of the registered contract (registered and accepted by the administration office or ready to be accepted, or an official copy of the last registered ownership deed in those cases where the property is not registered

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Copy of the construction license (where the property was constructed after 1992)

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Certificate issued by the real estate authority evidencing the payment of taxes

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Certificate of property disposition (form 19) regarding the required property + architecture sketches

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A detailed description of the land ownership portion plus the common parts (in cases where the property is new)

Documents required for properties under construction: -

Documents evidencing property ownership (allocation notice, handover)

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Financial status for payment

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Copy of the construction permit + architecture sketches

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Evidence of the land allocation and authorisation from city hall

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Evidence stating the unit’s portion in the land and the common part

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An approval obtained from city hall for registration and placing the property under lien

The funding rate is calculated as follow: Loan and discount rate announced by the Central Bank at the time of signing (currently 10% annually)+the company’s funding rate (between 4-6%) The rate is calculated at the end of each month according to the remaining balance in your account. The funding rate is adjusted at the end of each calendar year according to any change in the central bank’s prime Rate, regardless of whether the rate increases or reduces, your

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monthly payment remains stable. It’s the number of installments that will either increase or decrease in this case.

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