In the first quarter of 2024, banks and companies involved in the mortgage finance initiative for low-income individuals have allocated funds for the acquisition of housing units. The total funds disbursed amounted to EGP 68.85bn, benefiting approximately 564,023 customers.
A recent report by the Social Housing and Mortgage Finance Fund disclosed that banks contributed nearly EGP 66.448bn for about 544,626 customers by the end of March 2024. This contribution accounts for 96.5% of the entire initiative. Mortgage finance companies provided around EGP 2.405bn, aiding about 19,397 customers, which constitutes 2.2% of the overall funds.
The National Bank of Egypt (NBE) led the initiative’s bank participants, disbursing EGP 17.814bn to roughly 147,332 customers, securing a 25.9% share of the total financing.
Banque Misr followed, extending EGP 16.576bn to approximately 132,046 customers, holding a 24.1% share. The Housing and Development Bank (HDB) was next, offering EGP 7.303bn to about 73,718 customers, representing 10.6% of the funding. Banque du Caire ranked fourth, with EGP 5.575bn for 47,840 customers, equating to an 8.1% share.
QNB Alahli claimed fifth place with a 5.5% share, providing EGP 3.786bn for nearly 24,864 customers. The Commercial International Bank (CIB) followed with a 4.9% share, injecting EGP 3.385bn for about 25,177 customers.
The Industrial Development Bank (IDB) secured seventh place, with EGP 1.922bn for approximately 17,371 customers and a 2.8% share. The United Bank came next, with a 2.7% share and EGP 1.849bn for about 13,884 customers. The Arab African International Bank (AAIB) followed with a 1.8% share and EGP 1.248bn for around 10,452 customers. Al Mashreq Bank rounded out the top ten, providing EGP 1.092bn to about 6,610 customers, holding a 1.6% share.
Among the companies, Al-Tameer Mortgage Finance led with EGP 885.819m for 7,034 customers. Contact Mortgage Finance allocated EGP 838.728m for 6,167 customers, and Al-Ahly Mortgage Finance contributed EGP 284.436m for about 2,536 customers.
Amlak Mortgage Finance disbursed EGP 252.133m to 2,320 clients, while Tamweel Mortgage Finance allocated EGP 68.666m to 602 clients.
The Egyptian Housing Finance Company provided EGP 43.042m to 429 clients, Ahly United extended EGP 19.973m to 200 clients, and the Arab African International Company financed EGP 12.211m for 109 clients.
The Central Bank of Egypt (CBE) launched this initiative in February 2014, offering a subsidized decreasing interest rate for low- and middle-income earners, ranging from 5 to 7%.
In 2021, President Abdel Fattah Al-Sisi instructed the CBE to develop and introduce a mortgage finance program for low- and middle-income groups, facilitating homeownership through long-term loans of up to 30 years at a simplified interest rate not exceeding 3%.
In November 2022, Prime Minister Mostafa Madbouly decreed that the Ministry of Finance would oversee all initiatives offering returns below market rates, previously managed by the CBE.
The directive specified that for the real estate financing initiative targeting low- and middle-income individuals, which has an EGP 100bn allocation at a 3% interest rate, the Ministry of Housing, Utilities, and Urban Communities will cover the cost difference in the interest rate for the banks.
