Mortgage in Egypt

[queenie40something]

Hi - anymore information then please feel free to post here for all to see.

Regards.

Alison

 

[distant dreamer]

Mortgage News

Hi everyone,

Just found this article in OPP online, which looks like good news for mortgages:

 

[queenie40something]

Hi I have had to delete the above due to copyright.

Please post the link.

Regards

Alison

 

[distant dreamer]

Sorry, tried that before and the link won't work as its something we subscribe to at work. But briefly the article says that Tamweel, who are the UAEs largest provider of real estate finance have been granted a mortgage operations licence to start offering finace in Egypt to domestic and internatinal buyers, starting this year. So that sounds promising doesn't it!

 

[queenie40something]

Thanks for that - sounds very promising.

 

[vix]

Sorry, tried that before and the link won't work as its something we subscribe to at work. But briefly the article says that Tamweel, who are the UAEs largest provider of real estate finance have been granted a mortgage operations licence to start offering finace in Egypt to domestic and internatinal buyers, starting this year. So that sounds promising doesn't it!

I have not heard this yet, but I will make enquiries. distant d. is quite right that they are the largest providers in Dubai, they are goverment backed, any thing supported by Tamweel is (so I'm told) 110% safe. They are at this time delivering the same UAE service within Jordan, where property is also on the up. Also falls under Sharia law, so many benefits.

 

[vix]

Back again, Tamweel are starting operations in Saudi about now, and later in the Year in Egypt. Unlike conventional mortgage providers, which lend to the home buyers, Islamic companies generally buy the property and then rent it back to the home owner in instalments that include their profit.The company, which is partly owned by Dubai Islamic Bank , plans to 'dovetail' with the expansion of United Arab Emirates-based real estate developers, such as Emaar Properties and Damac, which are building homes and leisure facilities in these countries, and with which it works in Dubai

 

[Jeremy Sturgess]

Proper Mortgages coming to Egypt

Back again, Tamweel are starting operations in Saudi about now, and later in the Year in Egypt. Unlike conventional mortgage providers, which lend to the home buyers, Islamic companies generally buy the property and then rent it back to the home owner in instalments that include their profit.The company, which is partly owned by Dubai Islamic Bank , plans to 'dovetail' with the expansion of United Arab Emirates-based real estate developers, such as Emaar Properties and Damac, which are building homes and leisure facilities in these countries, and with which it works in Dubai

I have spoken to Tamweel from Dubai and they will be opening up sometime in the second qtr 08. They have hired a strong team to run the operation and have big plans. As in Dubai they will provide finance for completed buildings but they also will probably do a construction draw down mortgage in due course (with approved developers only) to cover payments during the construction period. I expect that the approved list of developers will be shorter than you think but will probably comprise the Damacs and Emaars and the leading Egyptian developers like SODiC and Orascom who own El Gouna. This will mean that if you want decent priced financing it will be more important than ever to consider whether the developer of your scheme is likely to be credible with financiers or not, at least for a while until the number of finance providers expands. This is important because of the way most developments are carried out on land that is leased from the govt on a development lease. In order to consider construction draw down financing the mortgage company will therefore need to be comfortable with the covenant and competance of the developer because this will often be the only meaningful collateral or security they will have until such time the developer has completed the development and exercised their option to buy of the government.


I understand all Tamweels products will be sharia compliant but will be available to all religious denominations and Egyptians and expatriates living in Egypt. It is not clear to me yet whether they will be open to foreign investors living abroad but wishing to buy in Egypt but this will come in due course. Likewise foreign currency mortgages will come but probably not initially. I will meet them soon in Cairo and update the forum thereafter.

Investors with completed projects can already obtain finance from the existing mortgage bankers in Egypt. I dealt with one called First Taamir mortgage a couple of years back and they were prepared to do 65% LTV over 10 years only and at 14% in Egyptian pounds only. Not very attractive and subject to all the other hurdles including the obvious title and property registration issues but also the requirement that the payments did not comprise more than 40% of the borrowers disposable income.

I would advise extreme caution to people being offerred mortgage finance in Egypt by overseas brokers, particularly if they require ANY money up front. I doubt a single mortgage has been arranged by an overseas broker for a foreign buyer of a second home in Egypt. You have a perfectly good chance of doing it yourself however if you can be bothered to visit First Taamir or one of the others.

 

[queenie40something]

Thanks Jeremy for your very informative post. We are very lucky to have you on board as you are a fountain of knowledge.

Regards

Alison

 

[Peter Mitry]

Very useful information Jeremy; any idea what sort of interest rates we might expect? Sharia products are of course already available at astronomic interest rates but I understand it is the land registry & title issues which are holding things up at present?

 

[vix]

I have spoken to Tamweel from Dubai and they will be opening up sometime in the second qtr 08. They have hired a strong team to run the operation and have big plans. As in Dubai they will provide finance for completed buildings but they also will probably do a construction draw down mortgage in due course (with approved developers only) to cover payments during the construction period. I expect that the approved list of developers will be shorter than you think but will probably comprise the Damacs and Emaars and the leading Egyptian developers like SODiC and Orascom who own El Gouna. This will mean that if you want decent priced financing it will be more important than ever to consider whether the developer of your scheme is likely to be credible with financiers or not, at least for a while until the number of finance providers expands. This is important because of the way most developments are carried out on land that is leased from the govt on a development lease. In order to consider construction draw down financing the mortgage company will therefore need to be comfortable with the covenant and competance of the developer because this will often be the only meaningful collateral or security they will have until such time the developer has completed the development and exercised their option to buy of the government.


I understand all Tamweels products will be sharia compliant but will be available to all religious denominations and Egyptians and expatriates living in Egypt. It is not clear to me yet whether they will be open to foreign investors living abroad but wishing to buy in Egypt but this will come in due course. Likewise foreign currency mortgages will come but probably not initially. I will meet them soon in Cairo and update the forum thereafter.

Investors with completed projects can already obtain finance from the existing mortgage bankers in Egypt. I dealt with one called First Taamir mortgage a couple of years back and they were prepared to do 65% LTV over 10 years only and at 14% in Egyptian pounds only. Not very attractive and subject to all the other hurdles including the obvious title and property registration issues but also the requirement that the payments did not comprise more than 40% of the borrowers disposable income.

I would advise extreme caution to people being offerred mortgage finance in Egypt by overseas brokers, particularly if they require ANY money up front. I doubt a single mortgage has been arranged by an overseas broker for a foreign buyer of a second home in Egypt. You have a perfectly good chance of doing it yourself however if you can be bothered to visit First Taamir or one of the others.

If the lending process is to be the same in Egypt as it is in Jordan and the UAE, lenders will have to already hold residency permits prior to applicacation.

 

[Jeremy Sturgess]

Very useful information Jeremy; any idea what sort of interest rates we might expect? Sharia products are of course already available at astronomic interest rates but I understand it is the land registry & title issues which are holding things up at present?

Peter the rate will depend on the currency of the loan. If it is Egyptian Pounds it will be around 13-14%. If in foreign currency I have been quoted margins over the equivalent LIBOR rate of 300 basis points. So if LIBOR is say 5% then the rate will be 8% approx. This is not bad at all for Egypt and it may be worse than this but with Gross yields achievable in double digits at good schemes,still worthwhile. Foreign currency loans will be available in due course and I am working hard with several lenders to achieve this but their availability will be restricted probably to those schemes where the developer has "approved" status with the lenders.

For the foreseeable future it will be cheaper to remortgage in the UK .

Yours

Jeremy

 

[Access Worldwide Property]

Mortgages for Egyptian properties

Hi everyone,

At long last we have been able to secure a genuine financial connection in the UK, for mortgages secured on properties built in Egypt.

The Terms:

The Loan to value is 60%

with terms between 7, 10 & 15 years.

Rate is 7.75%

Turnaround time should ideally be between 6 to 8 weeks, and we do have a solicitor for power of attorney should you need him.

With mortgage finance available now, we should start to see even better returns on investment property here on the Red Sea coast.

 

[cin7166]

Are these mortgages available on off plan properties or only on completion?

 

[Access Worldwide Property]

Egyptian Mortgage Finance

Are these mortgages available on off plan properties or only on completion?

Hi There,

These mortgages are available for both off-plan and completed properties. We deal with an FSA rated company in the UK for the provision of mortgage finance.

If we can help, please contact us.

have a good day.

Alan

 

[Access Worldwide Property]

We introduce to a UK based company who is authorised and regulated by the Financial Services Authority in respect of mortgage and general insurance mediation activities
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

 

[Thediver]

Hi would love to see and hear more on this.

 

[Access Worldwide Property]

Egyptian Mortgage Finance

Hi would love to see and hear more on this.

Thank you for your interest.

Please contact us by either email and/or telephone, where we will be pleased to be of further assistance.

Regards

Alan


[email protected]
Access Worldwide

 

[realestatemart]

We introduce to a UK based company who is authorised and regulated by the Financial Services Authority in respect of mortgage and general insurance mediation activities
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Do you support Egypt?

 

[Access Worldwide Property]

Hi,

The company that we shall be introducing our clients to, support Egyptian properties.

Regards

Alan