Skip to content Skip to Search
Skip navigation

Egypt increases home loan repayment limit to 50%

Unsplash.com
FRA chairman says the move aims to counter the ramifications of high inflation rates

Egypt’s Financial Regulatory Authority (FRA) has increased the maximum installment limit for mortgage finance schemes up to 50 percent of the purchaser’s income, according to a local media report.

Previously, the maximum limit was set at 40 percent.

This aims to increase the number of beneficiaries from real estate financing, said FRA Chairman Mohamed Farid, adding it will allow homebuyers to pay installments of up to 50 percent of their monthly gross income in mortgage financing.

“The move aims to counter the ramifications of high inflation rates in light of the current economic conditions in the markets,” Farid said.

Farid said that the FRA always seeks solutions and suitable alternatives to enhance the efficiency and competitiveness of the non-banking financial markets, including mortgages.

In July 2021, the Central Bank of Egypt introduced a EGP 100 billion ($4.05 billion) mortgage finance initiative that serves low and middle-income citizens.

Finance mortgage firms provided EGP 4.2 billion in home loans in the third quarter of 2022, up 71.5 percent year-on-year, according to the FRA’s data.

Latest articles

A tourist with an arabian foal at Alhazm stud, Khubash, Saudi Arabia. 106m tourists visited the kingdom last year

Saudi Arabia hits tourism target seven years early

More than 106 million tourists visited Saudi Arabia last year, surpassing the kingdom’s 2030 target and prompting it to set a new goal of welcoming 150 million annual visitors by the end of the decade, according to the Ministry of Tourism. Achieving the milestone target of the Vision 2030 economic roadmap seven years early cements […]

Asked about reports the IMF loan could rise to $12bn, managing director Kristalina Georgieva said: 'There is nothing wrong in thinking big'

IMF expects bigger loan deal for Egypt within weeks

The International Monetary Fund expects a financing package for Egypt to be finalised within weeks, its chief said on Tuesday – while also entertaining speculation that the loan could rise to $12 billion. Speaking on the sidelines of a G20 finance meeting in Brazil, IMF managing director Kristalina Georgieva told Reuters that issues delaying the […]

Ericcson and Turkcell signed the 6G agreement at Mobile World Congress in Barcelona

Ericsson and Turkcell to lead 6G research in Turkey

Swedish telecom company Ericsson and Turkish operator Turkcell will begin advancements on research and development of 6G in Turkey. The sixth-generation wireless network will use higher frequencies than its predecessor 5G and provide substantially higher capacity and much lower latency. The advent of 6G networks holds promise of faster connectivity in various sectors including wireless […]