Housing Committee supports mortgage updates

Parliamentary committee of housing has supported the suggested updates of the mortgage law, that were presented by mortgage companies to the Egyptian Mortgage association, in preparation to discuss these updates in the parliament, although these updates have not been delivered to the parliament.

Engineer Magdy Karkar – the committee’s agent- said that these suggested updates are expected to increase the rate of sorting to mortgaging, as a result of proposing new Islamic formulas to the law, such as Murabaha (credit-sales) and Ijara (leasing), as he mentioned that some people suspect the mortgage system of Reba (imposing interests).

He added that “Reba” is one of the most important reasons of avoiding mortgages by many people, as well as the difficulty of raising the value of monthly premium of 40%, because it is attached to the increase of minimum rate of wages.

He mentioned that the important cases presented to the parliament in the mean while – such as choosing the “100 committee” that will be in charge of writing the constitution- should not delay the discussions of the mortgage suggestion, when it delivered to the parliament

He confirmed also that the housing committee works in parallel with the rest of parliament’s committees.