The Ministry of Housing has announced the opening of applications for housing units for low- and middle-income citizens. This initiative provides an opportunity for millions to escape the financial burden of renting by offering the chance to own a home with long-term installment plans.
How Monthly Installments Are Determined
The applicant’s income is the primary factor in determining the monthly installment for social housing units.
According to the Social Housing and Mortgage Finance Support Fund’s guidelines, the installment is set to ensure it does not exceed a specific percentage of the applicant’s monthly income, preventing financial strain.
Low-Income Segment
Low-income individuals or families are defined as those with a total monthly income below a certain threshold (e.g., EGP 6,000 for families and EGP 4,500 for individuals, as per the latest update).
This segment benefits from direct financial support, including:
- Reduced interest rates: Subsidized loans with an interest rate as low as 3%.
- Extended repayment periods: Payment plans of up to 30 years.
Monthly Installments:
- Range from EGP 400 to EGP 1,500, depending on income and unit price.
Middle-Income Segment
This segment includes individuals or families with monthly incomes ranging between EGP 4,500 and EGP 10,000 for individuals, and EGP 6,000 to EGP 14,000 for families.
Benefits for this segment include:
- Affordable financing rates: Interest rates of 7% to 8%.
- Flexible repayment terms: Payment plans up to 25 years.
Monthly Installments:
- Range from EGP 1,500 to EGP 3,000, depending on unit price and repayment period