CAIRO: Egypt plans to amend its mortgage finance law to facilitate access to funding particularly to youth, Investment Minister Mahmoud Mohieldin told local press.
The amendments will be presented to Prime Minister Ahmed Nazif within weeks, and will set out to change the mortgage percentage of total income. According to the current law, the percentage of the mortgage shouldn’t exceed 25 percent of income, said Maged Eldin Ibrahim, chairman of the board at Taamir Mortgage.
The amendment will aim to raise that between 30 and 33 percent, he added, and will maintain lower risk levels for mortgages.
The Housing Support Fund, under the modified law, will support 30,000 units annually with tightened grant conditions and supervisory terms. The limited income segment will have access to more finance at smaller monthly installments, added Ibrahim.
In the Euromoney for Real Estate Finance Conference held last May, Mohieldin said the project aims to cut the cost of finance and monthly premiums. Priority will be given to those buying units for the first time and the maximum price will be LE 95, 000 a unit.
The main beneficiaries of the amendments are meant to be the limited income segment, who have limited access to financing.
“Now value of mortgages will reach LE 70,000 to LE 80,000, which will allow those with limited income to choose from a wider variety. Ibrahim said.