i didn't realise there were different payment plans available, I assumed that you paid a small deposit then the balance in a few months time. I will have to look into this, as i might be able to buy a more expensive perminant home in the summer.

Payment plans are improving all of the time; there is one new project offering 25% on contract with 15% during the four year build and a 60% Dubai mortgage on completion. Another is spreading payments interest free over the two year build time.

The initial payment is usually between 25 & 40% but most Developers will be flexible on the balance.

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With only 20 or so payment plans to keep track of it's possible to do a different plan one for everyone.The more interesting

The point is that there are times when, from a cash flow point of view, I may be happier to say, take a large upfront payment with a good discount, or it may suit me better to go INTEREST FREE for 12 months with small deposit and monthly payments, with a small amount after completion.

The more interesting ones are where the new owner has a lump sum due at a fixed point in the future so the plan will take this into account when calculatiing the initial discounted price.

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WWD payment plans are 10% reservation, 30% on contract and then 60% on completion and they have two banks looking at providing mortgages. In fact they have over 20 mortgage applications in and are expecting to get them very soon. This will make them a forerunner in the Egyptian property market.

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Everthing is negotiable, for example;
Have client has purchased via our agent network 2 studios, has paid 30% upfront, is going to pay another 30% over 12 months on Interest free payments. Will have mortgage pay the balance of 40% and then recieve cashback of 25% as mortgage offers LTV of 65% with interest rates at 6.5%, pretty good going.
Nothing is ever set in stone don't feel your circumstances or financial liabilities are restricting you, talk to your agents as nothing is impossible.

Good morning,
we have a good conditions with CIB for the Hyde Park


1) Mortgage can be extended to Egyptians living abroad or non-Egyptians living in Egypt with valid work permit.

2) Mortgage house can finance up to 80% of the value of the property (the customer has to pay the first 20% and then the CIB will finance).

3) Interest rate is 11.5% for the first five years and 12% years after.

4) Mortgage to go up to 15 years.

5) Customers can choose to either pay escalating installments, fixed installments or pay the interest first and then principal (the later is good for investors)

6) Arrangement fee is 1.5% of the value of the loan (paid once at the initiation of the deal).

7) The customer should make a life insurance with the value of the loan and make the CIB as the beneficiary under this policy.

8) We can finance in LE or US$ (however, in US$ financing, the customer must prove that he/she has income stream in US$).

9) We can finance employees and self employed as well (however, for self employed, they can finance up to 65% of total value of the property).

10) Customer will receive (on the spot) a preliminary approval on the loan amount and schedule of monthly payments, providing that all information he/she gave to the Mortgage house if correct and providing that he passes the medical test "for life insurance considerations").

Can we get away from this talk of "interest free" payments. As a general rule (and I know there are a couple of exceptions for very small percentages) the full balance is paid by the time you receive the key to your apartment.
You are not getting anything interest free as you have paid up front already, what you have done is lost interest on your capital.
You don't buy something like a large TV over here on a 12 month interest free package and not actually get the TV for 12 months do you.

Sorry, getting on my wick this one - rant over !!!

Mark .Y.

Hi Mark Y,

I agree with you. You pay most of your money upfront usually 40% and then remainder over a period of time or on completion again around 2 years.

As for mortgages this debate will go on and on until we have an official statement from one of the BIG Lenders eg HSBC. My advice to people wanting to borrow is do it only if you can afford it and that would be by way of remortgaging any equity in your house or a simple loan. Suggestions that mortgages in Egypt are cheaper is wrong and misleading. On this thread we have had 11.5% quoted which is almost double what you would pay in the UK.


There you are my rant over too.

Regards

Westmids33

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From what I've seen the "interest free" offer is technically true since there is no extra to pay, but there is obviously a loss, either from borrowing or in loss of interest on savings withdrawn - what you do get hopefully is a fixed price in a rising market. There is also likely to be an amount, maybe between 5% & 10%, that is not paid until 4 to 8 weeks after completion - which clearly is interest free if the price is fixed.

Has anyone had to pay a higher price than initially quoted - seems that it happens in other countries !!!
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The top and bottom of this is, buying off plan gives the developer a fair chunk of your money to start building the development.
Once the resell market kicks in here the developers may have to think differently.
It isn't a buyers market a the moment if you see what I mean.