Skip to content Skip to Search
Skip navigation

Egypt increases home loan repayment limit to 50%

By Pramod Kumar
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

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]