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Egypt opens reservations for fully finished housing units under new mortgage initiative - Daily News Egypt

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Egypt opens reservations for fully finished housing units under new mortgage initiative

Move comes as part of ‘Housing for All Egyptians’ initiative for mortgage finance with 3% interest rate

Egypt’s Social Housing and Mortgage Finance Fund (SHMFF) has opened the reservations window for fully finished housing units, as part of President Abdel Fattah Al-Sisi’s “Housing for All Egyptians 2” initiative.

The announcement was made by Minister of Housing, Utilities and Urban Communities Assem El Gazzar, who noted that the units are aimed at low- and middle-income individuals.

The move comes in light of the Central Bank of Egypt (CBE) launching the new initiative to provide mortgage finance at an interest rate of 3%. The initiative is valid for a period of 30 years, and was implemented on 13 July.

Mai Abdel Hamid, CEO of the SHMFF, said that two announcements will be published relating to the offer of housing units ready for immediate delivery, and others under construction (to be delivered within 36 months) across Egypt.

Reservations can be made between 8 and 14 August 14 for citizens with special needs only, and from 15 August to 9 September for all citizens, including those with special needs. Abdel Hamid noted that reservations can be made through the Fund’s online portal.

The first announcement includes units ready for immediate delivery, with areas ranging from 75 to 90 sqm, in the cities and centres of the following governorates: Ismailia; Minya; Sharqeya; Sohag; Qena; Alexandria; Menoufia; Kafr El-Sheikh; Aswan; Gharbeya; Beheira; Matrouh; Fayoum; Beni Suef; Assiut; New Valley; Luxor; North Sinai; and Damietta.

The prices of these housing units range between EGP 164,000-310,000, whilst other units will be offered within the same initiative in the cities of Shata and Zarqa in Damietta Governorate. The units offered in the latter cities will feature areas ranging between 105 and 114 sqm, at a price ranging between EGP 640,000-900,000.

Purchasing the units under the initiative will happen in accordance with the real estate financing system, and the detailed conditions of the initiative issued by CBE on 13 July 2021.

A down payment starting from 10% will be required for low-income units, alongside 15% for middle-income units, for a period of up to 30 years, at a return rate of 3% annually.

The conditions and specifications booklet can be purchased, with an amount for reservations and administrative expenses to be paid through automated post offices in the locations in which the housing units are offered.

On the other hand, the second announcement is for middle-income citizens only, and includes fully finished units that will be delivered within 36 months.

The units will be offered in the following cities: Badr; Gardens of the Capital; May 15; Hadayek October; 6th October; 10th of Ramadan; New Aswan; New Alamein; New Minya; Nasser; New Rasheed; New Beni Suef; Hurghada “Al Badari;” and Port Fouad.

The offered housing units range between 100 and 120 sqm, and will be sold for between EGP 471,000-950,000. A total of 12 quarterly payments will be made starting on 1 January 2022, at a value of 25% of the unit price.

The rest of the unit price will be paid up to a maximum of 65% of its sale price using the real estate financing system for a period of up to 30 years at an annual interest rate of 3%.

Regarding income limits, Abdel Hamid said that for low-income citizens, the maximum annual net income for individuals is EGP 54,000, equivalent to EGP 4,500 per month. Meanwhile, the maximum annual net income for a family is EGP 72,000, equivalent to EGP 6000 per month.

As for middle-income citizens, the maximum annual net income for singles is EGP 120,000, equivalent to EGP 10,000 per month, and EGP 168,000 annually for families, equivalent to EGP 14,000 per month.

This is provided that the minimum net monthly income for low-income earners is EGP 1,200, and the minimum net monthly income for middle-income earners is EGP 2,500.

Topics: mortgage

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