A mortgage in Egypt is a loan from a bank or a licensed mortgage finance company to buy a home, repaid in installments with interest and secured on the property. There are three main routes: subsidised Central Bank of Egypt (CBE) initiatives for low and middle incomes, applied for through the Social Housing and Mortgage Finance Fund; a bank's own home loan at its own rate; and a loan from a mortgage finance company regulated by the Financial Regulatory Authority (FRA). All figures below are quoted from official documents with their dates. They change by decision, so check the current terms before you rely on them.
What are the mortgage routes in Egypt?
| Route | Who lends | Who sets the rules | Rate |
|---|---|---|---|
| CBE subsidised initiatives | Participating banks, for applicants who meet the Fund's criteria | CBE circulars, after Cabinet approval | Set by circular (see below) |
| Bank home loans outside the initiatives | The bank | CBE banking rules and the bank's own policy | The bank's own rate |
| Mortgage finance companies | Companies licensed by the FRA | Mortgage Finance Law 148 of 2001 and FRA decisions | The company's own rate |
| Developer installment plan (not a mortgage) | The developer | The sale contract | No stated interest; the cost sits in the price |
The last row is there because you may be weighing a mortgage against a developer plan. A developer plan is a deferred payment of the price, not a loan. The guide to down payment and installments explains how such a plan is calculated.
What are the current terms of the CBE initiatives?
The rate change of October 2025
According to a CBE circular dated 16 October 2025, the Cabinet approved new rates on 15 October 2025 for two initiatives: the middle-income initiative of December 2019 moved to 12% (declining) from 8%, and the low and middle-income initiative of July 2021 moved to 8% (declining) from 3%. The new rates apply to any new loan under the two initiatives from 15 October 2025.
Two later circulars carved out exceptions:
- A circular dated 4 November 2025 says the new rates do not apply to customers who had already applied to book under the "Sakan Lekol El Masreyeen" announcements numbered 1, 2 and 3, which had been offered at 3% and 8% (declining).
- A circular dated 1 February 2026 says the Cabinet agreed on 6 January 2026 to keep financing at 3% and 8% (declining) for the files of families of martyrs and injured members of the armed forces and police, people injured in military operations, and urgent humanitarian cases, within 600 housing units a year, for files sent by the Social Housing and Mortgage Finance Fund only.
Income caps and down payment under the Fund's initiative
According to a CBE circular dated 4 February 2025, the Cabinet approved new income brackets, rates and a minimum down payment for the mortgage initiative applied through the Social Housing and Mortgage Finance Fund:
| Category | Maximum net monthly income | Rate (declining) | Minimum down payment |
|---|---|---|---|
| Low income, first bracket | EGP 10,000 individual, EGP 13,000 family | 7.5% | 20% |
| Low income, second bracket | EGP 12,000 individual, EGP 15,000 family | 8% | 20% |
| Middle income | EGP 20,000 individual, EGP 25,000 family | 12% | 20% |
The circular notes that the income caps are adjusted according to what the Fund issues, and that the Fund informs banks of each customer's rate through its electronic system. Earlier, on 22 October 2024, the official Egyptian Real Estate Platform reported the Fund's chief executive as saying that units in the "Housing for All Egyptians" offering would carry 8% for low incomes and 12% for middle incomes, with down payments from 20% and repayment over up to 20 years.
When we tried to open the Fund's website (shmff.gov.eg) on 26 October 2026, it did not load (a connection error), so we could not confirm whether newer caps have been issued. Check the Fund's latest announcement before applying.
How a bank presents the initiative
Banks publish their own pages for these programmes. Mashreq Egypt's middle-income initiative page, as viewed on 26 October 2026, lists a repayment period of up to 20 years, a minimum down payment of 20% of the unit price, a maximum unit price of EGP 2.5 million, a maximum financing of 2 million, a maximum monthly salary of EGP 40,000 and EGP 50,000 for a couple, and says applications go through the Social Housing Fund's announcements. The page shows no date and no rate figure, and its income caps differ from the February 2025 circular above. That gap is a reason to get the current terms in writing from the bank and the Fund before you decide.
What rules apply to mortgage finance companies?
Mortgage finance companies work under Mortgage Finance Law 148 of 2001 and are supervised by the FRA. In a statement dated 29 July 2026, the FRA restated the limits in its board decision 111 of 2015:
| Rule (FRA decision 111 of 2015, as stated on 29 July 2026) | Limit |
|---|---|
| Residential financing to individuals | Up to 90% of the property value; up to 100% under ijara (lease-to-own) |
| Monthly installment | No more than 50% of the borrower's income |
| Exposure to one borrower, spouse and minor children (residential) | No more than 15% of the company's capital base |
| Non-residential financing | Up to 80% of the property value, and no more than 30% of the capital base per borrower |
In the same statement the FRA allowed "participatory financing", where more than one company finances the same high-value unit, provided each company meets all the rules on its own.
These are the FRA's rules for its licensed companies. Banks follow CBE rules and their own credit policies, which can differ.
How is a mortgage installment calculated?
The CBE circulars above quote their rates as "declining" (متناقص): interest is charged on the balance you still owe, so each payment covers that period's interest and repays part of the loan.
Illustrative example with hypothetical numbers
A unit at EGP 1,250,000, a 20% down payment (250,000) and a loan of EGP 1,000,000 over 20 years (240 monthly installments).
| Yearly rate (declining) | Monthly installment | Total repaid | Total interest |
|---|---|---|---|
| 8% | about 8,364 | about 2,007,456 | about 1,007,456 |
| 12% | about 11,011 | about 2,642,607 | about 1,642,607 |
At 12%, the first installment is EGP 10,000 of interest and about EGP 1,011 of principal; the share of principal grows over time. If a lender caps the installment at 50% of income, as the FRA rule above does for mortgage finance companies, the 12% case needs a monthly income of at least about EGP 22,022. This assumes the yearly rate is divided by 12; ask the lender how it computes interest, fees and insurance.
For comparison with market lending, the CBE kept its overnight lending rate at 20% on 24 September 2026, according to its press release. A bank loan outside the subsidised initiatives is priced by the bank.
Mortgage or developer plan?
A developer plan follows the sale contract: the developer's terms, the developer's dates, and no interest stated separately, because the cost of time sits in the price. A mortgage adds a lender: conditions on your income and on the unit, interest on the balance, and the lender's fees. To compare the two fairly, put both on the same footing: what you pay in total and what it is worth today. The guide to comparing payment plans shows how, and the guide to developer discounts and cash prices explains why a cash price matters when a mortgage could pay it.
Frequently asked questions
What is the current rate of the CBE middle-income mortgage initiative?
According to the CBE circular of 16 October 2025, 12% declining for new loans from 15 October 2025, with exceptions set out in circulars dated 4 November 2025 and 1 February 2026. Check the current circulars on the CBE website before applying.
Who can apply for the subsidised initiative?
Applicants within the Fund's income brackets, through the Fund's announcements. The February 2025 circular set the middle-income cap at EGP 20,000 net a month for an individual and EGP 25,000 for a family, and said the caps follow what the Fund issues.
What does "declining rate" mean?
Interest is worked out on the remaining balance, not on the original loan. As you repay, the interest part of each installment shrinks and the principal part grows.
How much can a mortgage company lend?
Under FRA decision 111 of 2015, as the FRA restated on 29 July 2026, up to 90% of the property value for residential financing to individuals (100% under ijara), with the installment capped at 50% of income.
Does CalcRealty calculate a mortgage?
No. CalcRealty's payment plan calculator models developer payment plans (down payment, discounts, maintenance deposit and installments) and does not model bank mortgages with interest. For a mortgage, ask the lender for a written schedule.
Run the numbers
Use the payment plan calculator in the CalcRealty app for the developer side of your decision: the down payment, a discount before or after the down payment, the maintenance deposit and the full installment schedule, which you can export as a PDF. Get CalcRealty on Google Play. Then set the developer schedule against the lender's written mortgage schedule.
Before deciding, add every extra charge with the guide to the total cost of owning a unit, and look up unfamiliar terms in the real estate glossary.
Results are planning estimates; the developer contract and the lender's offer set the final amounts.