1. What is mortgage finance?
It is finance for investment in buying, building, reconstructing or improving building and administrative units as well as service installations and commercial shops. The house shall be mortgaged or other guarantees shall be accepted by the financer according to the rules and procedures stipulated by the mortgage law regulations.
2. What are the advantages of mortgage finance?
· The longest payment period as compared to other systems.
· Financing up to 90% of the house value to be bought.
· Fixed return rate during the contracting period even if the market has a higher rate.
· Possibility of early payment of the mortgage.
· Possibility of selecting suitable options like the down payment and the monthly installments.
3. What are the risks involved in mortgage finance?
Inability of payment leads to the acquisition of the house by the financer.
4. Where can we acquire the property clearance certificate (form 19)?
You can obtain form no.19 directly when you present a copy of the registered property contract to the registry office. The form will be processed within approximately two weeks time
5. What information should be included in my HR Letter or Income Statement?
The HR Letter or Income Statement should include the following info: The Gross and Net Income amounts, Your Position, Date of Employment, Company Stamp, The Type of Contract (Yearly or Open). If the client is a private business owner, he is required to submit his income statement according to the Federal Tax Authority for the past three years.
6. Can we add up the income of the husband and the wife?
Yes, you can add up your income and your wife's income to obtain the necessary finance. The finance application should be completed with the income documents.
7. What are the limits of the installments?
The monthly installment should not exceed:
· 25% of your monthly income if you benefit from mortgage finance guarantee fund.
· 40% of your monthly income if you do not benefit from mortgage finance guarantee fund.
8. What are the insurance policies?
When you get the finance, your life will be insured (in case of death or partial disability). The insurance company will pay the total amount of finance so that the house will be debt-free. The house shall be insured against fire.
9. How shall the house be evaluated and what if the evaluation price is different from the required one?
The donor will assign one of the valuation companies to valuate the house. The investor will be informed about the valuation costs. In case of different prices, the donor commits to the valuation made be the expert.
10. How can you deal with pensioners?
We can deal with early retirements provided that the investor pays the whole amount of finance before reaching the maximum age for financing that is 60 years.
11. Can the monthly installment exceed the defined maximum rate of income?
Under no conditions, shall the installments exceed the defined rate.
12. Should the finance always be 90% of the house value?
The maximum for finance is 90% or lower (50%, 60% or 70%...etc..), according to the investor's wish and the credit criteria governing the donor.
13. Does the donor have the right to ask for more guarantees for finance?
The donor is entitled is ask for more guarantees so that it can finance the investor and commit to its credit criteria.
14. Can we deal with the donor directly or through mortgage brokers?
You can deal with the donor directly and you can also deal through a mortgage broker who is registered in the Mortgage Finance Authority. Cost of broker is paid by the donor.
15. What if the investor was unable to pay the installments?
In that case the donor should be informed to acquire the house according the executive regulations of the mortgage finance law no 148/2001.
16. Which entity receives and examines the mortgage finance complaints?
There is a specialized office in the Mortgage Finance Authority for receiving and examining the complaints on violating the mortgage finance law and its regulations. Complaints can be sent to mortgage finance authority.
17. How can we benefit from the mortgage finance guarantee fund?
The investor can apply for the mortgage finance guarantee fund if his annual income does not exceed L.E 12.000 or the annual family income does not exceed L.E 18.000 and if the family has not received a house from the state.
For information and application: Mortgage Finance Guarantee and Support,
Buildings of the General Organization for Building and Housing Cooperatives, Nasr Raod,
Nasr Ciry, Opposite the Medical Centre of the Arab Contractors. Building no 11.
Tel: 3420529 - 3420516