is a loaning process that provides cash flow (not exceeding 90% of
the value) for
the purchase or construction of houses as well as administrative,
services and commercial units and for renovating or improving
existing ones. Then borrowers shall make a 10 to 20% down payment
and pay off the rest in installments for periodic payment for a
maximum of thirty year (according to the agreement with the finance
institution), in case the borrower pay all the installments the
property shall be acquired for him.
The Mortgage Finance System gives the borrower the option to
choose a suitable property for him in all over Egypt.
A mortgage is mainly secured by the property for which the mortgage
was required. This property shall be chosen by the mortgage finance
applicant or by any certified real estate broker. It shall be
registered in the real estate registration office or able to be
registered. In case of lands and units in new urban cities there is
only one condition which is to provide a letter from the
administrative office of the city in which the property located for
the finance institution states that there is no objection to
register or mortgage the building without the land.
Parties to mortgage finance agreement:
1- Borrower (Mortgage Finance Applicant).
2- Lenders; firms or banks authorized to practice Mortgage Finance
3- Owner of the property or contractor.
Parties related to Mortgage Finance:
1- Mortgage Broker: - is the person (or organization) authorized by
Mortgage Finance Authority (MFA) which is replaced by the Egyptian
Financial Supervisory Authority (EFSA). He facilitates
mortgage borrowers and owner/ contractor or Mortgage Finance
Firm or Bank, Helps the borrower in select the property that suits
his budget and calculates the monthly installments that can be
afforded and the appropriate payment period as well as the suitable
Financial Institution to deal with. He also helps prepare and submit
the required documents to the lender.
The Broker shall provide the borrower with a 'Form' comprising the
basic conditions for real estate finance developed by EFSA, inform
him with the mortgage conditions and risks, and prepare mortgage
finance file. The lender shall undertake to pay all brokerage fees
(not to exceed 2.5% of mortgage finance value)
2- Appraiser: is a person or
(organization) registered at EFSA in a special record. Authorized to
evaluate the property and determines its fair value by an assessment
report for the lender, upon which the required loan amount shall be
determined, in order to notify the client with the assessment result
and estimate the value of the property in case of purchasing. The
lender shall appoint the Appraiser while the Borrower shall bear its
3- Real Estate Agent: is the
person or (organization) assigned by execution judge among agents
registered at EFSA, to conduct the selling procedures of the
property in public auction, in case of default in payments by the
To be appointed, he shall have no direct or indirect interest in
selling the property or with the lender or the borrower.
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