Egyptian Financial Supervisory Authority (EFSA) and New Urban Communities Authority (NUCA) signed an agreement on Sunday that ensures the rights of mortgage finance companies, a statement from EFSA said..
According to the statement, the items that have been approved by the authorities stipulate that a facility must partially register each phase of a property unit as soon as it is completed, The agreement also allows for smaller properties to be registered after being fully paid for, without having to prove the seriousness of the buyer.
This initiative came in the wake of a meeting between Housing Minister Ibrahim Mehleb and representatives of EFSA, NUCA, Real Estate Publicity Department, Housing and Development Bank as well as a mortgage finance association.
EFSA head Sherif Sami was quoted in the statement as saying that this agreement attempts to increase the amount of mortgage financing in Egypt. Sami also said that developing the real estate sector is one of the authority’s main objectives.
Sami noted that the Real Estate Finance Law, issued in 2001, is currently being amended to expand the list of activities that can be financed and the tranches that benefit from the fund.
Deputy Prime Minister and Minister of International Cooperation Ziad Bahaa El Din noted on Thursday that these amendments guarantee an increase in the legal lending limit for individuals and establishing mechanisms for the Mortgage Finance Fund to finance and provide housing for lower income individuals.
Bahaa El Din also said that this law would facilitate property registration in new cities and provide better access to housing loans for low income individuals.
“Real estate registration offices will be established in every city in Egypt for the purpose of registering each phase as soon as it is completed,” he said.