CBE approves amendments to mortgage interest rates for income brackets
Updated 2/5/2025 10:40:00 AM
Arab Finance: The Central Bank of Egypt (CBE) has approved new amendments to the income brackets and interest rates for mortgage financing, following discussions in Cabinet sessions No. 263 on November 8th, 2023, and No. 15 on October 16th, 2024, as per a circular.
These changes pertain to the mortgage finance initiative originally introduced in a circular dated February 19, 2014, which limited financing to low-income individuals through the Social Housing Fund and mortgage finance support.
Under the updated terms for the low-income group, individuals earning EGP 10,000 and households earning EGP 13,000 monthly will incur a diminishing interest rate of 7.5%.
Individuals with a monthly income of EGP 12,000 and families with an income of EGP 15,000 will face a diminishing interest rate of 8%.
For the middle-income group, individuals with a salary of EGP 20,000 and families with a combined income of EGP 25,000 will be subject to a diminishing interest rate of 12%.
A minimum down payment of 20% is required for all cases.
The Social Housing and Mortgage Finance Fund will notify banks of the applicable interest rate for each client through its electronic system.
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