Egyptian Mortgage Association (EMA) submitted its suggested updates regarding the mortgage loan to the Egyptian Financial Supervisory Authority (EFSA), to be discussed in the parliament within the upcoming days.
Mohamed Samir – Member of the association’s board, and the Secretary of the fund – said that these updates include, increasing the proportion of monthly premium for low-income people from the 20% to 40%, as well as engaging some Islamic models with the mortgage law such as Ijara (Islamic Finance leasing) and profit and loss sharing (Murabaha).
He said also that these updates include some stimulating procedures for mortgage investors, including the deduction of the value of monthly earnings provided by the client from the tax container, which encourages the clients to participate in mortgage finance system because it reduces the taxes imposed on them.
He pointed out that EMA presented these updates to the EFSA after being examined within 10 mortgage companies in the Egyptian market, as well as the Mortgage Fund and the Egyptian Company for refinancing, adding that EFSA is expected to send the proposed updates to Housing Committee, of the Parliament during its current round.
Samir also ruled out the probability of delaying the discussions about the mortgage law, as a result of the current parliamentary discussions about the constitution committee, as he mentioned that housing is considered as one of the basic demands of the citizens.
Samir clarified that the preparations of setting the association’s project in cooperation with the ministry of Justice and the title registration aiming at reviving the registration, as he mentioned that the project targets the registration of 1.5 million units in the range between 1000 and 1500 EGP s a registration cost per unit, which should allow bringing one billion EGP to the State Treasury.