The Central Bank of Egypt (CBE) has launched an EGP-100- billion mortgage finance initiative targeting low and middle-income homebuyers.

The initiative supports those segments in paying for their own housing units through instalments over a period of up to 30 years and a diminishing interest rate of not more than 3 percent, the CBE said in a statement.

This is done following directives by President Abdel Fattah El Sisi to help low and middle-income brackets get suitable houses at subsidized prices and over a long period.

The net monthly income of low-class applicants should not exceed 4,500 pounds for singles and 6,000 pounds for families, the CBE said, putting the current value of each residential unit at 350,000 pounds, 10 percent of which should be down payment.

Middle-class applicants should earn a maximum net monthly income of 10,000 pounds for singles and 14,000 pounds for families, with 15 percent of the total value of the unit – estimated to cost some 1.1 million – in down payment.

Applicants for units worth more than 1.1 million until 1.4 million pounds should pay 20 percent of the value in advance, the CBE added.

The initiative stipulates that beneficiaries should be Egyptians whose age is not above 75 years old by the end of the instalments period.

Source: State Information Service Egypt