What are the terms of real estate financing? And the apartments to which the subsidy applies in 2023

Real estate financing conditions and apartments to which the subsidy applies in 2023, one of the most important procedures that a citizen must know fully before applying in order for his papers to be accepted in a faster manner.

Here are the terms of the mortgage in detail:

1- The applicant must be from the governorate in which the housing unit is located.

2- Priority shall be given to workers or residents in the same governorate. Middle-income applicants are excluded.

3- One family is not entitled to apply for reserving more than one housing unit in the new cities and governorates in one advertisement.

4- The applicant did not obtain any previous housing unit in the new cities or governorates, whether it was in his possession or assigned to others or in partnership with others.

5- The applicant or the family does not own a residential plot of land in the new cities or governorates.

6- The applicant or the family should not have benefited from a cooperative loan or support from the National Housing Project or one of the public agencies that provide support to obtain a housing unit.

7- The applicant or the family, whether the husband or wife, or minor children, should not have benefited from previous real estate financing initiatives issued by the Central Bank on February 2014 or on December 2019 and July 2021.

8- It is prohibited to dispose of the units before the lapse of 7 years from the date of receiving or obtaining the approval of the fund’s board of directors, and whoever violates this shall be punished by imprisonment for a period of no less than one year, and a fine of no less than twenty thousand pounds.

9- The applicant acknowledges the validity of the data and documents submitted by him upon booking, and in case of violation, he will be criminally and civilly liable.

What are the apartments for which real estate financing is applicable?

1- The unit must be fully finished and ready to move in immediately.

2- The maximum unit price is 2.5 million pounds.

3- It must be for permanent residence.

4- Allowing banks to accept alternative guarantees in case the unit cannot be registered.

5- The unit shall be registered in the notarization or registerable, and there shall be no financial or real estate violations on it.

6- After verifying the unit and its compliance with the conditions, then the financing party is approached, and it can be a bank or a real estate financing company.

7- Extending the mortgage term to 25 years.

External financing terms

- Enjoying the Egyptian nationality.

- The age of the applicant should not be less than 21 years and not more than 50 years from the date of application. 

- The applicant or the family should not have previously benefited from previous real estate financing initiatives, 2014, 2019, 2021.

- It is required that the unit be fully finished and ready for habitation, and it is required that it be for the purpose of permanent housing.

- The applicant is prohibited from purchasing units in cash and is committed to paying by the real estate financing system.

- The income of the low-income applicant from all his sources of income should not exceed 6 thousand pounds per month for the family, and for the single person more than 4.5 thousand pounds per month.

- The minimum monthly net income for dealing with the real estate financing system is 1,200 pounds for low-income people, and it is 2,500 pounds for middle-income people, according to the notifications of the financing banks.

- It is required that the unit be registered in the real estate registry or capable of being registered and that there are no financial or real estate violations on it.

- If the applicant is a low-income applicant, a 10% down payment is seriously paid as a minimum down payment of the total unit value, where the loan is at a return rate of 3% and a maximum of 30 years. 

- After confirming the unit and its compliance with the conditions, the financing party is approached, and it may be a bank or a real estate financing company.

- The price of the housing unit is determined by the real estate appraiser at the financing entity.