Regulatory Alerts2025-02-04
Added · Updated
Periodic Book of February 4, 2025 on Adjusting Return Prices for Financing within the Framework of the Real Estate Finance Initiative
The document amends the income brackets and return prices for real estate financing under the Real Estate Finance Initiative, effective immediately. It establishes a minimum down payment of 20% and sets return rates at 7.5% for low-income individuals earning up to 12,000 EGP or families up to 13,000 EGP, 8% for individuals up to 15,000 EGP or families up to 20,000 EGP, and 12% for medium-income individuals earning up to 25,000 EGP or families up to 25,000 EGP. Banks are required to apply these rates to eligible customers through the Social Housing and Real Estate Finance Support Fund's electronic system.
Dear Mr. Chairman of the Board,
Bank
Greetings,
With reference to the Real Estate Finance Initiative issued by the Periodic Book dated February 19, 2014, and subsequent periodic books regarding limiting the initiative to financing only the low-income category for customers applying through the Social Housing and Real Estate Finance Support Fund, as well as the periodic letter issued on November 21, 2022, regarding the Cabinet decision concerning initiatives with low returns.
Please be informed that the Cabinet has issued a decision in its sessions No. 263 dated November 8, 2023, and No. 15 dated October 16, 2024, approving the modification of income brackets and the return price for real estate financing within the framework of the aforementioned initiative, as well as the minimum down payment. Accordingly, the Fund will inform banks of the return price for each customer through its electronic system.
| Minimum Down Payment | Net Monthly Income* | Return Price (Declining) | Customer Category |
|---|---|---|---|
| 20% | 12,000 EGP for individual / 13,000 EGP for family | 7.5% | Low Income |
| 15,000 EGP for individual / 20,000 EGP for family | 8% | Low Income | |
| 25,000 EGP for individual / 25,000 EGP for family | 12% | Medium Income |
*Subject to adjustment according to what is issued by the Social Housing and Real Estate Finance Support Fund.
Please be kind enough to alert regarding compliance with the above as of its date.
Accept our highest regards,
Tarek Al-Khouli