Mortgage Update - good news

wemyss1960 · #1 23-05-2008, 05:52 PM

Basically if the land is owned (with title) by an individual or a development company then there should be no problem getting a mortgage

Maximum 60% loan to value

Capital and interest repayment basis in Egyptian Pounds

Rate unknown as yet (NOT GOING TO GUESS)

Maximum Term of 15 years

Loan must be repaid by age 65

Mortgages are definately not available in Sahl Hasheesh yet as land title is with the Egyptian Tourist Authority and cannot be transferred till the whole development is complete.

This is all the info I have till next week

Enjoy your weekend!

HORIZON · #2 31-05-2008, 01:41 PM

Quote:

Originally Posted by wemyss1960

Basically if the land is owned (with title) by an individual or a development company then there should be no problem getting a mortgage

Maximum 60% loan to value

Capital and interest repayment basis in Egyptian Pounds

Rate unknown as yet (NOT GOING TO GUESS)

Maximum Term of 15 years

Loan must be repaid by age 65

Mortgages are definately not available in Sahl Hasheesh yet as land title is with the Egyptian Tourist Authority and cannot be transferred till the whole development is complete.

This is all the info I have till next week

Enjoy your weekend!

Checked with Amlak Finance and Tamweel companies: they are giving 80 to 90 % max 20 years. Interest rate based on Central Bank rate which is 10 % at the moment, varies from 12 to 13.5%.

All the best,

HORIZON · #3 02-06-2008, 03:01 PM

Quote:

Originally Posted by wemyss1960

Basically if the land is owned (with title) by an individual or a development company then there should be no problem getting a mortgage

Maximum 60% loan to value

Capital and interest repayment basis in Egyptian Pounds

Rate unknown as yet (NOT GOING TO GUESS)

Maximum Term of 15 years

Loan must be repaid by age 65

Mortgages are definately not available in Sahl Hasheesh yet as land title is with the Egyptian Tourist Authority and cannot be transferred till the whole development is complete.

This is all the info I have till next week

Enjoy your weekend!

I just want to clarify the point with Sahl Hasheesh as I checked for this specifically.
Once the developer buys the land from Egyptian Resorts Company which is managing the whole area, land title deed goes to the developer and upon completion of particular project after registering the project itself, the property can be registered in the Notary. Therefore since is subject to registration, mortgages ARE available.

Jeremy Sturgess · #4 02-06-2008, 07:15 PM

Quote:

Originally Posted by HORIZON

Checked with Amlak Finance and Tamweel companies: they are giving 80 to 90 % max 20 years. Interest rate based on Central Bank rate which is 10 % at the moment, varies from 12 to 13.5%.

All the best,

I would expect that LTV's of 80-90% for terms up to 20 years are only available for egyptian nationals and not available for foreigners. I believe most banks and mortgage cos (certainly the ones ive talked to) impose a maximum term for foreigners of 10 years and a max LTV of 65% at present. Would be helpful if you would clarify with these companies what their best terms are for foreign investors and what currencies are available.

HORIZON · #5 02-06-2008, 07:26 PM

Hi Jeremy,

Both of these companies are international, just with office in Egypt and they do offer high LTV and term even for foreigners. By the way, since 2 months banks in Egypt are not allowed to issue mortgages to foreign citizens, just mortgage companies.

If you could specify your mortgage requirement on PM, I would certainly call them to enquire about your specific matter if you wish.

All the best,

Jeremy Sturgess · #6 02-06-2008, 10:19 PM

Quote:

Originally Posted by HORIZON

Hi Jeremy,

Both of these companies are international, just with office in Egypt and they do offer high LTV and term even for foreigners. By the way, since 2 months banks in Egypt are not allowed to issue mortgages to foreign citizens, just mortgage companies.

If you could specify your mortgage requirement on PM, I would certainly call them to enquire about your specific matter if you wish.

All the best,

As I understand on Apr 1 the Central Bank of Egypt changed their rules on what the banks they regulate can do in the mortgage field. I understand this rule change only forbid them to provide construction draw down loans for off plan property. It didnt (so far as Im aware ) ban them from issuing mortgages to foreign citizens as you seem to imply above.

HSBC is still offering loans to foreigners (Im still confused about whether this is just to foreigners with residency status in Egypt or all foreigners - I think the former) but on completed property only. The max term is 10 yrs and interest rate is 2% over 1 year dollar liboe for a USD loan. Maximun loan to value is 65%. Interest rate resets annually in line with 1 yr libor.

The mortgage companies are not bound by this CBE rule change as they are not regulated by CBE. My investigations however indicate that foreigners are still restricted to 10 years term and 65% LTV in all the term sheets ive seen. Why dont you post a term sheet for foreigners from Tamweel or Amlak-my belief is you will find that the terms you are referring to apply only to Egyptian resident nationals and not johnny foreigner.

wemyss1960 · #7 03-06-2008, 08:19 PM

Amlak Finance & Real Estate Investment - Documents Checklist

this clearly states that non egyptians require a valid residence permit.

wemyss1960 · #8 03-06-2008, 10:50 PM

:: Taamir Mortgage Co. ::

These do lend to non Egyptian/non residents but, I believe it is only for certain developments - mainly Cairo etc..

check link for details under financing types.

I have sent an email regarding the possibility of lending in Hurghada region.

HORIZON · #9 05-06-2008, 10:17 AM

Quote:

Originally Posted by Jeremy Sturgess

As I understand on Apr 1 the Central Bank of Egypt changed their rules on what the banks they regulate can do in the mortgage field. I understand this rule change only forbid them to provide construction draw down loans for off plan property. It didnt (so far as Im aware ) ban them from issuing mortgages to foreign citizens as you seem to imply above.

HSBC is still offering loans to foreigners (Im still confused about whether this is just to foreigners with residency status in Egypt or all foreigners - I think the former) but on completed property only. The max term is 10 yrs and interest rate is 2% over 1 year dollar liboe for a USD loan. Maximun loan to value is 65%. Interest rate resets annually in line with 1 yr libor.

The mortgage companies are not bound by this CBE rule change as they are not regulated by CBE. My investigations however indicate that foreigners are still restricted to 10 years term and 65% LTV in all the term sheets ive seen. Why dont you post a term sheet for foreigners from Tamweel or Amlak-my belief is you will find that the terms you are referring to apply only to Egyptian resident nationals and not johnny foreigner.

I checked and according to the new rules the banks in Egypt cannot issue mortgages for key ready properties, nor off-plan projects, just financing companies. In most of them you need to have residence visa to take a loan.

Amlak lends uptill 90% even for foreigners. I am waiting for a call from corporate business manager to confirm this.

The Smart Money · #10 12-06-2008, 08:25 PM

I am very keen to hear the outcome of this, please keep us all informed!!!