Real Estate Financing for Middle Income Individuals as per the Initiative of the Central Bank of Egypt

 

Description

Payroll Clients

Income Verification

Self-Employed and

Commercial Activities

Financing Percentage

50%

Financing Percentage

80%

75%

50%

Loan Tenure in Years

Minimum

5 Years

Maximum

20 Years

Annual Rate of Return on Decreasing Loan Balance  

8%

Maximum Net Monthly Income

Single

EGP 40,000

Married

EGP 50,000

Housing Unit

Maximum Value of Residential Unit: EGP 2.25 Million

Value of Financing

Minimum

EGP 200,000

Maximum

EGP 1.8 Million

Administrative Fees

None

Insurance

Life and total disability insurance policy, with policy fees and charges borne by the Bank

 

Customer Documents:

 

  • A clear copy of the national ID of both spouses

  • A recent utilities receipt or telephone bill, provided that the document is issued within the previous three months.

  • Any document verifying income (for both spouses) in accordance with the following:  

 

 

Category

Required Documents

Employees of the government, public sector, public business sector and the private sector

Submitting any of the following documents:

  • Income certificate from the concerned department at the place of employment to be valid for two months at most (in the case of periodic non-monthly incomes, periodic profits or bonuses or marketing-related commissions, then these must be verified).
  • Three recent salary paychecks (original or certified copy)
  • Bank statement indicating salary transfer (original or certified copy) for the three previous months, provided that the customer submits a document verifying minimum experience at the place of employment, as per the requirements of each program.

Self-employed (physician, engineer, etc. or employers of commercial, industrial or service activities)

Submitting any of the following documents:

  • A recent bank statement for six months
  • A certificate from the Tax Authority indicating the customer’s income on which the taxation transactions of the previous three years were based.

Customers under the 50% program and employees of the private sector

 

Any verification of the above in accordance with the nature of work, while exempting the customer from coding and classification procedures.

Customers under the 50% program for self-employed and commercial activities

Submitting any of the following documents:

  • A certificate from a certified public accountant by the CBE / Egyptian Society of Accountants and Auditors.
  • A recent bank statement for six months
  • A certificate from the Tax Authority indicating the customer’s income on which the taxation transactions of the previous three years were based.

 

 

  • In the case of the Self-Employed Program: a copy of the tax card and a copy of the license to practice.

  • In the case of Employers of Commercial, Industrial or Service Activities: a recent official transcript of the commercial or industrial register that is no more than 3 months old and a copy of the tax card.

 

 

Residential Unit Documents:

 

In the event of the Owner being the Urban Communities Authority 
 
  • Authority’s ownership deed (declared contract, UCA’s ownership deed of the land, Ministerial or Presidential Decree issued promulgating the allocation of the land to UCA) declared at the Land Registry.

  • Building licenses or certificate from the UCA stating that the buildings were constructed by it without the issuance of building licenses.

  • Area and detailed maps certified by the New Urban Community, indicating scale size of the drawing, drawing no., directions, name of the city, plot no. and property numbers.

  • Approval of the UCA for selling the residential units to customers and mortgaging the same with the Bank.

     

An Owner to which Ownership was Conferred by the New Urban Communities Authority  
 

First: In the event of financing the unit and its share of the land:
 
    • Registered deed title, free of any in-kind dues owed to third parties

    • Building license or permit

    • A certificate from the Real Estate Tax Authority declaring that the property is assigned in the owner’s name and that the real estate taxes are paid in full.

    • A certificate from the concerned administrative entity stating that there are no violations on the housing unit to be financed, until the date of the application.

    • Property deed certificate for 15 years preceding the date of the application

    • Any additional document requested by the Legal Department

       

Noting that some of these documents may be renewed following the approval to grant, in order to undertake the necessary legal procedures for registration and insurance.

 

Second: In the event of financing the unit without a share of the land:

 

    • Land deed title (allocation decision – preliminary contract) registered at the Land Registry, free of any in-kind dues owed to third parties.

    • Certificate issued by the legal representative of the land-owner including an attestation that the administrator of the buildings has constructed the same at his own expense, is entitled to own and dispose of the buildings; provided that the signature of said legal representative is certified by way of the seal of the State – in the event that the land owner is a government entity, a public sector or public business sector company or a subsidiary of either.

    • A certificate from the Urban Communities Authority of ownership succession, including all surveying information pertaining to the unit, succession of ownership, disposal, restrictions on ownership – if any – and conformity of building to the issued licenses.

    • Property deed certificate for 15 years preceding the date of the application

    • A certificate from the Real Estate Tax Authority declaring that the property is assigned in the owner’s name and that the real estate taxes are paid in full.

    • Any additional document requested by the Legal Department

 

Third: Individuals / Companies / Societies / Property Developers:

 

    • Deed title, registered at the Land Registry, free of any in-kind dues owed to third parties

    • Building license or permit

    • A certificate from the Real Estate Tax Authority declaring that the property is assigned in the owner’s name and that the real estate taxes are paid in full.

    • A certificate from the concerned administrative entity stating that there are no violations on the housing unit to be financed until the date of the application.

    • Property deed certificate for 15 years preceding the date of the application

    • Any additional document requested by the Legal Department

 

Noting that some of these documents may be renewed following the approval to grant, in order to undertake the necessary legal procedures for registration and insurance.

 

Fourth: Owner is the Social Housing and Real Estate Financing Fund:

 

    • Land deed title registered at the Land Registry, free of any in-kind dues owed to third parties.

    • Certificate issued by the legal representative of the land-owner including an attestation that the administrator of the buildings has constructed the same at his own expense, is entitled to own and dispose of the buildings; provided that the signature of said legal representative is certified by way of the seal of the State.

    • A certificate from the Urban Communities Authority of ownership succession, including all surveying information pertaining to the unit, succession of ownership, disposal, restrictions on ownership – if any – and conformity of building to the issued licenses.

    • Property deed certificate for 15 years preceding the date of the application

    • A certificate from the Real Estate Tax Authority declaring that the property is assigned in the owner’s name and that the real estate taxes are paid in full.

    • Any additional document requested by the Legal Department