Is real estate financing limited only to the purchase of a property for the purpose of housing?

Real estate financing is not only limited to the purchase of a property for the purpose of housing, But real estate financing is also suitable for building, restoring real estate or finishing real estate, whether that funding is for the purpose of housing, or for the administrative, commercial, or service purpose.

Who are the people who are eligible to obtain real estate financing?

Every Egyptian person or foreign resident at least 21 years old and can prove his income in a document and provide evidence of sufficient income that is qualified to apply for real estate financing.

Can real estate financing be granted to Egyptians abroad?

Yes, Egyptians, internationally, can apply for real estate financing appropriate for their needs. Only an income proof certificate is documented by the Egyptian and Egyptian Foreign Embassy and the work of an official public attorney that delegates the customer to his representative to sign the real estate financing application.

How do you define the appropriate financing entity?

There are about 38 banks and 14 financing companies currently in the banking sector that can be chosen between them, And the choice depends at the level of service, The time required to issue financing, Spread and diversity in financing areas, After sales service, And finally financing fees and costs, And customers can use the mediators Real estate financing to choose the most appropriate.

Is there a maximum age for the customer who wants to obtain real estate financing?

No, No, but on the basis of the age of the customer, the maximum financing period is determined, Determined by the end of the financing period so that the customer does not exceed 60 years if he is an employee and 65 years for business owners and free professions, If the customer is his age when submitting the application 50 years, He can obtain Real estate financing for a period of 10 years if he is an employee and the financing period may extend to 15 years if he is an employer or a free profession.

Is real estate financing limited only to people?

No real estate financing law deals with the buyer as an investor, whether it is a natural or legal person (company).

How is it to ensure that the price of the unit represents the true value of the unit?

The price of the unit is determined by an independent real estate evaluation expert accredited by the Financial Supervision Authority, And it is appointed directly by the funded authority (the bank or company). The evaluation is done through three methods:

• The comparative sale method (market method): By comparison with previous sale prices for some similar real estate after making appropriate amendments to these prices based on the comparative comparison elements, for example: The site, the view, the area, The quality of construction, The case of facilities, The public services ( Introduction, elevators, internal roads), Additional features (special garden, garage, air conditioning, kitchen), Finishing type.
• Method of drawing income: Through the hypothesis that the value of the property subject to the evaluation is related to the expected future benefit of the property and (cash flows) and includes the total annual market revenues and effective income calculation (the total income is reluctant to operate and depreciation expenses).
• The method of calculating the cost: The value of the property is estimated by calculating the cost of construction at the current prices, in addition to the real estate share of the land on which the current prices are presented, including the value of depreciation and the cost of repairs.

What is the legislative framework for real estate financing activity in Egypt?

The legislative framework for real estate financing activity in Egypt is done through the Real Estate Finance Law No. 148 of 2001 and its executive regulations, And Law No. 55 of 2014 amending some provisions of the Real Estate Finance Law No. 148, The Social Housing Law and Real Estate Finance Support No. 93 of 2018, And the Societies Law New Urban No. 59 of 1979, Law No. 27 of 2018 regarding regulating the provisions of the month for new cities, Central Bank Law No. 194 of 2020, and the Central Bank’s publications for the Real Estate Finance Initiative for Limited and Mediterranean. All laws and legislation organized can be found through the following link: http://www.fra.gov.eg/content/efsa_ar/mf_pages/laws_mof.htm

What is the body that is in charge of organizing and controlling the real estate financing activity in Egypt?

The Financial Supervisory Authority supervises real estate financing affairs, setting controls that guarantee the efficiency of the market, monitoring its activity, controlling it, working to develop it, taking all measures that maintain the rights of all parties deal in it, including the control, inspection of companies, and the imposition of administrative penalties on the violating companies , And protect investors and dealers in the real estate financing market. And you can learn more about the role of the authority in supervision and supervision of real estate financing activities through the following link: http://www.fra.gov.eg/content/efsa_ar/mf_pages/main_mf_page.htm

Should the property to be purchased be registered?

Yes, the basic principle in real estate financing is that the property is the subject of financing registered in the name of the seller or subject to registration.

What is the real estate registration system in Egypt?

Real estate registration, according to the law in force in Egypt, now includes two registration systems, namely:

• Personal month system (real estate month) is an old legal system for real estate registration that is mainly taken from people so that properties and other in -kind rights are searching in alphabets that include the names of people, and it is the system followed for real estate registration within the borders of cities.
• The in -kind registry system is A relatively modern legal system for real estate registration that takes the same real estate as it is mainly for each real estate unit in which the real estate data and dealers and the rights related to it allocated, And it is the system followed for real estate registration in new urban communities: October, New Cairo, Al -Shorouk, Badr, Tenth of Ramadan, Obour, ...
• The system of allocation in the cities of new urban communities: The allocation is to sell by public auction, Or by the lottery system, Or by a direct matter determined by the board of directors of the authority and cities agencies, whether to dispose of lands or real estate.

If the unit is registered, what are the required documents?

A copy of the seller's card
A copy of the unit registration contract
Real estate actions certificate (Form 19)
An official disclosure of real estate taxes (returns)
Proof of the Ownership / previous agencies

If the unit is registered, what are the required documents?

A copy of the seller's card
A copy of the primary sale contract
A certified image of engineering graphics
Approving the first deal, if any
Certificate of real estate actions on the ground (Form 19)
An official disclosure of real estate taxes (returns)
Proof of the Ownership / previous agencies

If the unit is owned by an individual and is located within the new urban areas, what are the required documents?

A copy of the ministerial decision / decision to allocate the land
A copy of the ground delivery record
A copy of the financial position of the land
A copy of the buildings of the unit
A copy of the engineering drawings (projections and facades)
An answer from the New Urban Communities Authority that there is no objection to mortgaging the buildings without the land
A copy of the primary sale contract / the payment of the reservation provider to the unit
Proof of the Ownership / previous agencies.

If the unit is owned by a real estate developer (compound) and is located within the new urban areas, what are the required documents?

A copy of the ministerial decision / decision to allocate the land
A copy of the city's surveying map
A copy of the detailed map
A copy of the ground delivery record
A copy of the financial position of the land
A copy of the buildings of the unit
A copy of the engineering drawings (projections and facades)
A copy of the primary sale contract / the payment of the reservation provider to the unit
Proof of the Ownership / previous agencies
A copy of the company's commercial registry and a copy of the tax card
A commitment to register from the royal company
A ban on the unit for the bank An answer from the New Urban Communities
Authority that there is no objection to mortgaging the buildings without the land

What is the volume of financing you can get?

The volume of funding depends on two main factors:
First: On the basis of the value of the property so that the financing value cannot exceed 80% or 90% of its price.
Example: A real estate unit costing 2.0 million pounds. The maximum financing is 1,600,000 pounds, So that the buyer pays 20% (400,000 pounds) as a provider for the funded entity and gets funding for the rest of the amount.
Secondly: On the basis of the income of the buyer (the investor) so that the value of the monthly installment does not exceed 40% of his income

Example: If the income of the buyer (or the family) is 40,000 pounds per month, The maximum value of the monthly installment is 16,000 pounds (40% of the income value), And this gives the buyer financing of 1,645,870 pounds.
Based on the above, the maximum amount of financing is 1,645,870 pounds.
Note: The value of the financing was calculated on a decrease in a decrease of 8% for a period of 15 years, and considering that the unit is candid.

What is the time when I should pay funding?

There is no specific period of time to pay the financing, as real estate financing can be paid in the long term within a period of time that extends to 30 years according to the payment tables, Provided that the full financing is paid before the customer reaches 60 years if he is an employee and 65 years if he is the owner of a free profession, Specific installments can be paid on a monthly, e, quarterly, semi -annual, or annual.

Can the couple's income be combined?

Yes, you can combine your income and your wife's income in one statement of income. In this case, the total income of the couple is dealt with in the proportions mentioned in the aforementioned credit limits (40% of the monthly income value).

What are the required documents by the buyer (investor)?

A picture of a valid national number card
Delivery of modern facilities for the housing store, whether it is ownership or rent.
A bank account statement for the last 6 months
Entry proof documents.

What are the documents required to prove income?

If you are working in the private sector, the public sector, or one of the governmental bodies, or otherwise, The income statement should include the detailed salary (net and total), the job, the date of employment, the workplace ring and the signature of the responsible manager, And if you are one of the professions, you can submit a certificate from an interest Taxes or From one of the legal accountants indicate your taxpayer income during the past three years or any other document that is acceptable to the financing authority.

Can business owners obtain real estate financing?

Yes, and the documents required to prove income are:
A copy of the national ID card / valid.
A legal accountant certificate to prove income includes the papers for the legal accountant (the Syndicate of Carnene's image / certificate of insurance and tax position).
A modern extract from the commercial record of the activity does not exceed 3 months from the date of the funding application and a copy of the tax card.
A copy of the company’s establishment contract / corporate newspaper / copy of the property contract or rental of the activity.
The last three budgets for activity (budget - income list - cash flow).
The company's bank account statement for the last three years.

Can free professions obtain real estate financing?

Yes, and the documents required to prove income are:
A copy of the national ID card / valid.
A copy of the profession's certificate / or a copy of the union's carneh
A copy of approved budgets (for at least two years with the dependence of the original).
A copy of the tax card / valid
Activity license / or copy of the professional registry.

Is the monthly income limited only?

The salary is part of the monthly income, where the monthly income can include deposits, investment certificates, rental receipts for real estate owned by the buyer (investor) or contract ownership contracts, tax declaration, or a certificate from a legal accountant or an official extract from the insurance statement, and the financier may accept any documents Others are reassured to prove the investor's income.

What happens if the customer fails to pay the real estate financing installments?

In the event that the customer is unable to pay, the financing authority should be notified immediately because the failure to pay 3 consecutive installments can lead to the financing authority taking legal measures through the Economic Court that may amount to implementation on the property, in accordance with the provisions of the Real Estate Finance Law No. 148 of the year 2001 and amending Law No. 55 of 2014 and amended executive regulations.

What is meant by implementation on the property?

The implementation of the property is tantamount to transferring the property ownership through the auction through a real estate agent to another buyer in favor of the financing authority to pay the debts of the first buyer.

Is the real estate registration after obtaining funding for compulsory?

This aims to protect your rights and obtain an official evidence of your property to the funded property to avoid any future conflicts.

What is the three-sided nodes?

The triple contract means the agreement of the agreement, according to which the process of granting real estate financing to the investor is called and this term is called, given that the parties to the financing signed by it are three parties to the buyer, the seller and the financier.
The real estate financing is under a three -party financing agreement between the financing parties on the forms approved by the authority, provided that it includes:
The real estate described a dedicated description of ignorance and its price, or in exchange for the right to use.
The amount of expedited amount is paid from the price of the property.
The number and value of the installments of the rest of the price and the conditions for fulfilling it.
The reduced value that is fulfilled in the case of expedited payment.

Can pensioners get real estate financing loans?

Real estate financing loans can be provided to early pensioners, provided that the total financing value is paid before reaching the maximum age determined by the financing authority, And it is usually 60 or 65 years.

How can I get a real estate action certificate?

You can obtain the certificate as soon as you submit photos from the real estate registered in the real estate registry office to which the property is subject to the purchase, And the certificate is issued within about two weeks from the date of submitting the application in cases where the real estate is not registered, But it is subject to the registration process.

Is there a real estate behavior certificate for units in new cities?

There are no certificates in the new urban communities for real estate behaviors, but a certificate from the New Urban Communities Authority can be obtained that there is no objection to the financing of the building after the land was excluded.

What type of restriction is placed on the property?

The property is subject to the first degree mortgage in favor of the financing authority as a guarantee of the financing process that can be referred to to fulfill the financier of his rights. . Noting that the buyer (the investor) can dispose of the property by sale after taking the money The approval of the financier.

Is it possible to sell the property subject to real estate financing during the time period of real estate financing?

Yes, it is permissible for the buyer after the approval of the financier to dispose of the property guaranteed by selling, gift, rent, or any other behaviors, But after the approval of the financier.

Can the buyer rent the property?

Yes, the buyer (investor) has the right to rent the property, provided that the financier approval is obtained, And the taxpayer may not agree to dispose of the property except for serious reasons.

Can the buyer accelerate the payment of financing before completing the agreed period?

Yes, if he wishes, He can pay for all or some premiums. In this case, the installments due on it are reduced according to the expedited payment schedule attached to the financing agreement.

Is it possible to obtain real estate financing that completely covers the price of the property?

It is not possible to grant real estate financing that covers all the cost of the property, as the buyer (investor) must contribute to paying a percentage of the value of the property, in order to ensure the seriousness of the buyer (the investor) and also to confront the risks, And there are maximum limits for the percentage of financing granted to the value of the property that ranges between 80% for 90 % Of the value of the property.

What is the transfer contract?

The transfer contract is the acceptance of the seller, the transfer of his rights in the premiums of the price or the rental value, or in exchange for the right to use and the associated guarantees to the financier of the conditions on which they agree, And the acceptance of the buyer (the investor) against the financier in the transfer of his rights to the investor to the company or one of the authorities authorized to start the storm activity .

Who is the real estate evaluation expert and what is his role?

It is every natural or legal person (licensed and registered with the General Authority for Financial Supervision) who performs the tasks of evaluating the property and determining its value for all funding purposes and has the right to request what he deems of data and documents necessary for the evaluation process. The real estate evaluation expert notifies the finance parties with a registered letter of access science within the description of the property and the appropriate value for it and the calculations used to determine this value.

Who is the real estate agent and what is his role?

It is every natural or legal person (licensed and registered with the General Authority for Financial Supervision) conducting the procedures for selling real estate by public auction in the event that the investor does not fulfill the amounts due from the authority funded under the direct supervision of the execution judge in the Economic Court and the judge appoints the real estate agent among the agents The real estate is restricted by their names at the General Authority for Financial Supervision.