Egypt’s central bank launches mortgage initiative for low, middle income citizens

Egypt’s central bank has launched on Tuesday a mortgage initiative, allocating 100 billion Egyptian pounds ($6.4 billion) for financing housing units in favour of low-and middle-income citizens.

The initiative will see banks and mortgage finance companies offering loans at a declining interest of 3 percent over a repayment period of up to 30 years, the central bank explained in a statement.

Low-income people earning up to 4,500 pounds per month, if single, and 6,000 pounds per month, if married, will be given access to mortgage lending with an advance payment of 10 percent for units with a maximum value of 350,000 pounds.

Meanwhile, the middle-income homebuyers earning up to 10,000 pounds per month, if single, and 14,000 pounds per month, if married, shall pay 15 percent in advance for units with a maximum value of 1.1 million pounds or 20 percent in advance for units worth up to 1.4 million.