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    The Mortgage authority in Egypt was established in 2002 and recently changed laws now allow non-residents to obtain mortgages for Egyptian property. To be eligible, a non-resident must obtain a residence visa and register the property, though registration can be a long process. Under Egyptian law, foreigners can own up to two properties not exceeding 4,000sqm total and financing is available for up to 60-80% of a property's appraised value with loans paid back over 10 years. However, only an estimated 10% of Egyptian properties are properly registered, which can complicate financing for foreign investors.

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    The Mortgage authority in Egypt was established in 2002 and recently changed laws now allow non-residents to obtain mortgages for Egyptian property. To be eligible, a non-resident must obtain a residence visa and register the property, though registration can be a long process. Under Egyptian law, foreigners can own up to two properties not exceeding 4,000sqm total and financing is available for up to 60-80% of a property's appraised value with loans paid back over 10 years. However, only an estimated 10% of Egyptian properties are properly registered, which can complicate financing for foreign investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    Download as doc, pdf, or txt
    54 views3 pages

    The Mortgage in Egypt2

    Uploaded by

    040466
    The Mortgage authority in Egypt was established in 2002 and recently changed laws now allow non-residents to obtain mortgages for Egyptian property. To be eligible, a non-resident must obtain a residence visa and register the property, though registration can be a long process. Under Egyptian law, foreigners can own up to two properties not exceeding 4,000sqm total and financing is available for up to 60-80% of a property's appraised value with loans paid back over 10 years. However, only an estimated 10% of Egyptian properties are properly registered, which can complicate financing for foreign investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as doc, pdf, or txt
    of 3

    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%)

    - Monthly installments are for up to 10 years

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

    - 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 )

    www.overseaspropertycentres.com | Tel: 0845 257 3737 (+44 121 460 1532)


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

    - 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

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

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

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


    architecture sketches

    - 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)

    - Financial status for payment

    - Copy of the construction permit + architecture sketches

    - Evidence of the land allocation and authorisation from city hall

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

    - 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

    www.overseaspropertycentres.com | Tel: 0845 257 3737 (+44 121 460 1532)


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

    www.overseaspropertycentres.com | Tel: 0845 257 3737 (+44 121 460 1532)

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