There is nothing wrong at all with what some brokers are doing to try and open up the mortgage market in Egypt; it will benefit everyone.What I object to is Developers publishing glossy brochures saying they have an agreed mortgage with an Egyptian bank over 12 or 15 years at 6.5% interest. I am sure that this will come and I would be delighted if someone can publish a letter from an Egyptian bank with an offer to this effect. Any Developers seen such a letter? It would be great to know its possible but I suspect that as of right now we won't see too many published!

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PROPERTY SHOP INC. International Property Brokers
EGYPT REAL - Your One Stop Shop for Hurghada Property

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What security is needed by banks etc before the will lend on a property in Hurghada.

Do they need a deed like they do in the UK, if so how can this be provided on an 0ff-plan purchase.

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I really need some clarification on this because the Complete Guide goes to press in the next 24 hours and the information that I have currently is that the interest rate that HSBC is charging is in the region of 13.5-15% (Egyptian Interbank rate is 12%)

I'll look a complete idiot if it turns out to be true that the rates are really only 6%.

The 13.5 - 15% rate comes on pretty good authority though.

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EGYPT REAL - Your One Stop Shop for Hurghada Property

Author of: Propertastic's Complete Guide to Hurghada Property and Egypt's Red Sea Riviera Real Estate

When I was In Hurghada last ( June 07 ) The savings rate was definately around 6% at that time,so logically the mortgage rate should be above this.
Maybe it's changed now,However 13 - 15% looks a bit on the high side.

I know that borrowing in most countries is based upon the Interbank rate of the currency involved plus maybe 1.5 - 2%

As the Egyptian Interbank rate is so high - 12% - I can understand that loans in LE would command interest rates of 13.5 - 15%

However, I would have thought that loans in GBP or EUR are based on either LIBOR or EURIBOR plus a few percent.

As a result, I would have have that Egyptian mortgages in GBP should be just slightly above what one would pay for a mortgage at the moment in the UK.

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EGYPT REAL - Your One Stop Shop for Hurghada Property

Author of: Propertastic's Complete Guide to Hurghada Property and Egypt's Red Sea Riviera Real Estate

Maybe like everything else foreign investors may have to pay a premium.

this is a funny subject...2 months ago I was speaking to a manager at the Orouba Branch in Cairo HSBC and he told me they are now offering mortgages to non-Egyptians and the information was on its way to me by email.

3 weeks ago in the Hurghada branch I was told the ministry of Defence is the only thing holding back HSBC offering mortgages to foreigners..

Dont know who to believe but when we get this in writing or get the first application I'll be a happy bunny

If you type 'mortgage egypt' into Google you will read that the restrictions to offering mortgages to foreigners have been lifted for sure.

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EGYPT REAL - Your One Stop Shop for Hurghada Property

Author of: Propertastic's Complete Guide to Hurghada Property and Egypt's Red Sea Riviera Real Estate

Who knows. All I know is things can change very quickly in Egypt... my lawyers and consultants are always having to re-check on current laws on foreigners for every aspect of my business in Egypt...

There is an egyptian mortgage broker I am sure around, he called me today, he must know. The reality is certain banks were in earlier than the others. Mortgages are still pretty new to Egypt. The french on Societe General were one of the first actually I think they were the first in the whole of Egypt, worth to give them a buzz. Come on we are in the 21st century do some quick searches and talk to banks directly.

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