This was President Abdel Fattah El-Sisi’s statement following the announcement of the new real estate financing initiative 2021, which became famous among the Egyptian people for its provision of meeting the citizen’s need to obtain his own home.
Are you thinking of becoming one of the beneficiaries of the CBE's initiative for real estate financing 2021? Now, you can follow this article to find out all the financing options available to you, in addition to knowing the latest social housing proposals to which the conditions of the initiative apply.
What is the Sisi initiative for real estate financing? And when was it announced?
The date of the real estate finance initiative was announced in March 2021 as part of a joint cooperation between the presidency and the Ministry of Housing, which resulted in the launch of a real estate finance project based on a long-term system with a duration of up to 30 years. The initiative also targets the middle and low-income groups.
Later, the results of this collaboration led to the announcement of The 3% initiative, interest and real estate financing for 30 years, which states:
- Calculate the “reducing interest” on the remaining value of the loan and not on the total unit value.
- Giving the opportunity to apply for the self-employed.
- Providing the opportunity to apply for citizens over the age of 60, provided that a reservation deposit of more than 40% is paid.
- Determining the value of the units for low and middle income.
What are the participating banks in the Mortgage Finance Initiative?
Among the recent decisions related to the real estate finance initiative was the allocation of investments amounting to 100 billion pounds, It is provided by officials of the Central Bank of Egypt through a group of companies and financing banks; Most notably:
- Banque Misr, Blom Bank, Banque du Caire, National Bank of Egypt, Nasser Social Bank, Housing and Development Bank, United Bank Bank, Arab Investment Bank, National Bank of Kuwait, Union National Bank, Credit Agricole Bank, Faisal Islamic Bank, Industrial Development Bank, Bank Qatari National National Bank, Arab Banking Company Bank, Commercial International Bank, Egyptian Gulf Bank, Egyptian Arab Real Estate Bank, Arab African International Bank, Amlak Company, Finance Company, Contact Company, Construction Company, Al Ahly United Company, Al Ahly Real Estate Finance Company, Al Arabi Company African International
What are the terms of real estate financing 2021?
The Central Bank, in cooperation with the finance fund officials, shall set the necessary conditions for the beneficiaries of the initiative; The brochure included some general provisions, the most important of which are:
- The applicant must hold the Egyptian nationality.
- The age of the applicant is not less than 21 years, and not more than 50 years when applying. The applicant or his family has not previously benefited from a national or governmental project. The applicant or his family does not own a housing unit, whether with his own money or a legal inheritance. The unit must be registered in the real estate month.
In addition to the above, the rest of the real estate financing conditions for middle-income people were mentioned; one of the importants:
Middle-income | Low-income people | |
married income | The net monthly income is not less than 6,000 pound, no more than 14,000 EGP. | The net monthly income does not exceed 6,000 EGP. |
Single income | The net monthly income is not less than 4,500 EGP, no more than 10,000 EGP. | The net monthly income does not exceed 4,500 EGP. |
unit price | between 1,100,000 EGP And 1,400,000 EGP. | 350,000 EGP |
Booking Provider | Starting from 15% to 20% of the unit price | 10% of the unit price |
What are the papers required for the real estate financing initiative of the Central Bank?
Al-Sisi’s initiative for real estate financing 2021 identified the papers required to apply for owning housing units outside the Ministry of Housing, which are:
- A copy of the applicant's identity card.
- A copy of the marriage certificate and the birth certificate of the children if the applicant is married.
- A recent photo of the submitted unit facilities (water - gas - electricity).
- Statement of salary items and annual net income.
- A copy of any documents related to the applicant's additional income, such as bank deposits or a pension.
- Payment of administrative expenses of 5% for low-income and 1% for middle-income.
Is it possible to apply for the real estate finance initiative for non-employees?
The conditions of Al-Sisi’s new real estate financing initiative were distinguished by some exceptions that concern self-employed and Egyptians abroad. We will present the required papers and documents as follows:
Required documents and papers | |
employee abroad | A copy of the applicant’s passport, visa, and residency. A copy of a valid bank account statement for at least 6 months. A copy and original of the salary certificate and work contract, notarized by the Ministry of Foreign Affairs and the Egyptian embassy abroad. |
business worker | صورة عقد تأسيس الشركة ومستخرج حديث من السجل التجاري.شهادة من المحاسب تُفيد بالموقف الضريبي والتأميني، إلى جانب الدخل الشهري والسنوي للنشاط.صورة من البطاقة الضريبية للنشاط التجاري وآخر إقرار ضريبي.صورة كارنيه المحاسب القانوني وشهادة مزاولة المهنة.كشف حساب بنكي أو دفتر بريد لآخر سنة من تاريخ تأسيس الشركة.صورة كشف ميزانية الشركة عن آخر 3 سنوات من تاريخ التأسيس. |
Freelancers | A bank statement or postal book for the last year. A copy of the tax card and the last tax return. A certificate from the accountant stating the tax and insurance position, along with the monthly and annual income. |
How can I apply for the Mortgage Finance Initiative?
Applying for the new mortgage initiative requires some documents to ensure the seriousness of the housing unit reservation; These papers include:
- A copy of the applicant's identity card.
- A copy of the marriage certificate and the birth certificate of the children if the applicant is married.
- A copy of the wife’s salary items if she is working, or an acknowledgment stating otherwise.
- A statement of the applicant's income statement and salary items.
- Payment receipt of the reservation and registration provider.
- A recent photo of the current housing facilities (water - gas - electricity).
What are the conditions of the Central Bank's initiative to finance real estate for housing units?
Mai Abdel Hamid, CEO of the Social Housing Fund, announced the specifications of the units affiliated to real estate financing 2021, where she confirmed that there are no restrictions on the size of the apartments, but that the unit must be subject to some conditions, the most prominent of which are:
- The apartment should be fully finished and ready for immediate occupancy.
- Owning the unit for housing purpose only.
- Registration of the unit in the real estate registry and the absence of any financial violations related to it.
How can the value of the housing unit be paid through the Central Bank’s initiative for real estate financing 2021?
Monthly dues for mortgage apartments are paid by the banks participating in the Central Bank initiative; The following are the payment steps in general and the forms presented for the two categories:
- The housing unit must meet all the conditions mentioned above.
- The applicant goes to one of the Mortgage Finance Initiative banks or companies to submit the necessary papers.
- 10% to 20% of the total amount is to be paid as a booking advance.
- The rest of the amount is divided over the agreed repayment period of 20 to 30 years.
With regard to the payment models presented for the limited and middle-income categories, they are:
first model | second model | third model | |
Residential unit value | One million and 400 thousand pounds | one million pound | 350 thousand pounds |
Category | middle income | middle income | limited income |
Booking Provider | 20% | 15% | 10% |
Payment System(أقساط شهرية) | 4,000 EGP for 30 years.or5,637 EGP for 20 years. | 3,000 EGP for 30 years.or4,278 EGP for 20 years. | 3,000 EGP for 30 years.or4,278 EGP for 20 years. |
What is the latest news on the Mortgage Finance Initiative?
Since the beginning of the real estate financing project, the news community has dominated the housing projects of the initiative and successive propositions, the most important of which are:
28 July 2021
- The first advertisement to apply the 3% initiative was launched by the Ministry of Housing, and it is the fifteenth advertisement within the “Housing for All Egyptians 2” project.
- تتراوح قيمة الوحدات المطروحة من 164 ألف جنيه to 910 thousand pounds.
- The announcement includes ready-to-move-in units and others to be delivered after three years.
- يبدأ التقديم لحجز الوحدات من August 15 and up to and up to 2021.
In conclusion, the presidential initiative for financing played a major role in reviving the real estate market in addition to providing citizens with ownership opportunities, which helped move forward towards a civilized architectural revolution that ensures an improvement in the quality of life.