The Central Bank of Egypt (CBE) decides to amend some of its conditions to the real estate finance initiative for middle-income issued in December 2019, Invest- Gate reports.
According to this initiative, EGP 50 bn are assigned to provide real estate finance for citizens, whose monthly income reaches EGP 40,000 (single) and EGP 50,000 (family), at an interest rate of 8%.
The amendments include:
- Increasing the financing term to 25 years instead of 20 years, with the possibility of applying this to existing clients benefiting from the initiative.
- Eliminating the requirement of maximum net unit area.
- Increasing the maximum unit price to EGP 2.5 mn, facilitating the terms of guarantees, and allowing banks to accept alternative guarantees in case the unit cannot be registered
In an official statement, CBE asserts that the goal of these amendments is to increase the number of bankable units in the initiative, so that, the largest number of citizens can benefit to obtain adequate housing at a low return price.
