Lebanon agrees final budget with no taxes to appease protesters    Live score: Manchester United v Liverpool (English Premier League)    Bayern Munich defender Suele sidelined with torn cruciate ligament    Russia-Africa Summit features historic friendship ties: Egypt's Sisi    UK's Johnson sends unsigned letter to EU asking for Brexit delay    Egypt's Sisi praises SCC's role in protecting justice, rights, freedoms    Kurdish militia kills soldier in northeast Syria despite ceasefire    Egypt is first destination for foreign investments in Africa: World Bank    Leather exports fall 31.5% in 8 months due to global demand – official    Egypt's Qalaa Holdings to operate 100% of refinery units in January – official    France's President Macron receives Egypt's Coptic Pope Tawadros II at Elysee    Egypt inks deal with Euroclear Bank to upgrade public debt management    Erdogan says Turkey to resume Syria offensive if truce deal falters    Egypt's Cooperative Insurance Society to cover NGOs clients' loans    Angry over Brexit, thousands gather in London demanding new referendum    After a young pupil dies of meningitis in Egypt, tips to help prevention    Live score: Zamalek v Arab Contractors (Egyptian Premier League)    Egypt's PM urges US's ADTRAN Inc. to invest in communications equipment    French President Macron receives Egypt's Coptic Pope Tawadros II at Elysee    Egypt keen to support DR Congo: Ambassador    Cairo metro back to normal operations following hours-long power disruption    Egypt's Pope Tawadros opens Saint Mary, Mar Youhanna Church in Belgium    Egypt's Irrigation minister reviews latest developments of Ethiopia's Renaissance Dam in Budapest    'Passports should be valid for six months,' Egypt's foreign ministry advises citizens planning travel abroad    Grand Nile Tower Arts & Cultural Centre launches second round    Egypt's coach Hossam El-Badry satisfied with winning start despite technical problems    Luxor's new discoveries    Moroccan film Nomades scoops awards in Alexandria Film Festival    Toshiba's JV with Egyptian Elaraby opens regional HQ in South Africa    Six authors vie for Booker prize 2019, Atwood in the lead    In Photos: A sneak peek into rehearsals for the Cleopatra ballet world premiere    Sisi, Ethiopia's PM to meet in Moscow to discuss GERD issue    Sisi: army engaged in attrition phase against terrorism in Sinai since 2013    10K fans to attend Egypt's friendly against Botswana in Alexandria: EFA    Sisi, Ethiopia's PM agree to overcome obstacles in Nile dam talks    Farwell to Egyptian comic actor Talaat Zakaria    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

CBE sets new controls for mortgage finance initiative for low-income individuals
Mortgage finance will be provided for clients who meet CBE's conditions
Published in Daily News Egypt on 24 - 02 - 2019

The Central Bank of Egypt (CBE) has issued new measures and controls for the mortgage finance initiative launched in February 2014 and its following amendments. The initiative has been limited to only individuals with low incomes.
In a statement, the bank stressed that the initiative will continue to provide financing to the low-income clients after its recent decision in January to make it limited to the low-income based on the new rules and measures.
The new measures include providing mortgage finance to clients who meet the CBE conditions through the banks' resources at interest rates of 5 – 7% for the low-income segments for a maximum period of 20 years without providing treasury bills as a guarantee.
CBE noted that banks will be compensated for the price difference of interests based on the main operation's price at the CBE.
The new controls also stipulated that the interest rates applied on mortgage financing shall not be changed after its provision and during the entire period of the loan.
The new measures added a condition that the CBE must be informed about the value of compensation within the first week of each month starting from the month that follows providing the loan.
The CBE has stressed the importance of banks taking the necessary measures for providing the mortgage financing to any low-income individual in the light of their credit policies, taking into consideration all credit controls issued by the CBE.
The CBE explained that banks must receive applications from low-income individuals through the Social Housing Fund, as this initiative will be applied on all the available units through the fund only.
The new procedures have stipulated conditions for the clients benefiting from the initiative, they must have the Egyptian nationality and they are entitled to benefit from the initiative only once, regardless of any mortgages that have been or will be obtained by the client outside the framework of the initiative.
The CBE has also stipulated that the maximum monthly income of customers and the maximum unit price shall be determined by the Board of Directors of the Social Housing Fund.
The new measures have allowed each bank to carry out the necessary credit studies according to its policy, obtain required credit approvals, and ensure all the conditions and guarantees that enable banks to complete the mortgage measures for clients were met, taking into consideration that the inquiry about clients shall be conducted through the Egyptian Credit Bureau (I-Score) to ensure that clients have not previously obtained a funding within the initiative's framework.
The new procedures also stipulate that clients' data shall be recorded on the e-registration system of the CBE's initiative to ensure that clients have only purchased one unit through the subsidised mortgage system, so that all banks would have the right to refrain from dealing with the client within the initiative's framework once he has obtained a financing approval from one bank.
As for families, the measures stipulated that the clients' marital status must be updated simultaneously. Documents that prove a change in the marital status must be provided to the bank that provides the loan.
According to the new procedures, if the client wishes to sell the unit or accelerate payment, the value of subsidy provided on the unit, starting from the date of granting the unit until the date of selling or accelerated payment, shall be refunded
The banks shall also be entitled to apply a 2% delay fee on the final value of the loan to be paid in instalments.
The new measures have excluded the injured and the families of police or army martyrs from the maximum income condition.
The measures have also included the possibility of using the assessment prepared by the Ministry of Housing or the New Urban Communities Authority, real estate assessors registered on the CBE's list of house of expertise assessors, or assessors that have been dealt with in the past, as a way to reduce the cost of real estate assessment.

Clic here to read the story from its source.