Mortgage in Egypt

[vix]

A lot of this misleading info originated from the agents. When I first put down my 10% dep., it was paid to Investors in the Sun. I was asked at the outset how I was to pay, when I said cash, they bombarded me with calls trying to succeed in my agreeing to use the cash to secure 3 properties, on 40% payment, with a promise of the balance being arranged by DPC.
What an awful lot of anguish this has caused to a lot of people.

[queenie40something]

Hi all - for those that are interested I have made a post in the lounge in the media thread. It is an article about the Central Bank of Egypt raising its interest rates - 4th time this year.

[NoMoreHotels]

Originally Posted by Peter Mitry

Our company has sold 5 million GBP in Egypt property in the past five months and we bank with HSBC. I think we would be the first to know if HSBC were offering mortgages to non residents and to the best of my knowledge they are not. Buyers beware! If you are promised a mortgage on completion make sure that you get a personal offer from the bank with the full terms and conditions before you proceed. Don't forget if you accept a promise from a Developer or Promoter it will be YOU searching for the funds on completion, not them. If a Developer is offering a personal finance scheme this is different; just make sure it is built in to your contract and have your lawyer check the terms and conditions.

Hopefully this will clear things up a little! Any Questions please PM me.

[Riccal]

Originally Posted by Adam Caan NMH

Hopefully this will clear things up a little! Any Questions please PM me.

Hi Adam

Just to clarify, is this mortgage available to non resident expatriates or does the borrower require a work/residence visa.

The last time I spoke to HSBC these basic terms were available but with the proviso that the expat must be an egyptian resident with an applicable visa.

Cheers

Rick

[NoMoreHotels]

Originally Posted by Riccal

Hi Adam

Just to clarify, is this mortgage available to non resident expatriates or does the borrower require a work/residence visa.

The last time I spoke to HSBC these basic terms were available but with the proviso that the expat must be an egyptian resident with an applicable visa.

Cheers

Rick

Hi Rick,

The "foreign national" must mantain a 12 month tourist residency visa for the first year which can be obtained from the Egyptian Consulate/Embassy in London.

Please see previous qoute.

[Riccal]

Originally Posted by Adam Caan NMH

Hi Rick,

The "foreign national" must mantain a 12 month tourist residency visa for the first year which can be obtained from the Egyptian Consulate/Embassy in London.

Please see previous qoute.

Thanks mate

In other words, HSBC will accept a 'notional' residential status in order to complete the paperwork for the mortgage.

Thats certainly an improvement in how I understood it. Have they rolled this out yet cos there are a lot of people completing on this forum who have been told that mortgages are no problem and have been let down. So long as they have a decent credit history this is the answer.

Cheers

Rick

[Peter Mitry]

Originally Posted by Adam Caan NMH

Hi Rick,

The "foreign national" must mantain a 12 month tourist residency visa for the first year which can be obtained from the Egyptian Consulate/Embassy in London.

Please see previous qoute.

Hi Adam am I right in thinking that 6.9% flat rate is equivalent to 13 or 14% on the reducing balance? Bank rates in Egypt are currently 12.5% so it is difficult to see how a mortgage could be less than this.

Nevertheless it is still a move in the right direction and should help to finance purchases for investors looking to hold for two or three years.

[NoMoreHotels]

Originally Posted by Peter Mitry

Hi Adam am I right in thinking that 6.9% flat rate is equivalent to 13 or 14% on the reducing balance? Bank rates in Egypt are currently 12.5% so it is difficult to see how a mortgage could be less than this.

Nevertheless it is still a move in the right direction and should help to finance purchases for investors looking to hold for two or three years.

I totally agree, the introduction of Finance does give this fantastic emerging market the right credibility.

If you check the figures in my previous qoute, I believe your figures to be in the right area.

To give experienced investors a little history lesson, when we are reminded of the introduction of Bulgarian mortgages many moons ago, the rates are virtually on a par with what is currently available in Egypt. As time goes on these will become a lot more competitive.

[NoMoreHotels]

Originally Posted by Riccal

Thanks mate

In other words, HSBC will accept a 'notional' residential status in order to complete the paperwork for the mortgage.

Thats certainly an improvement in how I understood it. Have they rolled this out yet cos there are a lot of people completing on this forum who have been told that mortgages are no problem and have been let down. So long as they have a decent credit history this is the answer.

Cheers

Rick

Rick,

From the correspondence that I have had, I believe your “Credit Rating” has no bearing on your application for housing finance, as the charge is on the property in Egypt. The ability to afford the repayments is one of the major pre-requisites for finance, so long as the monthly repayment does not exceed 40% of your PROVABLE monthly income you hopefully should have no problems, this of course in addition to criteria quoted earlier.

I am more than happy to answer any questions relating to mortgages for the Lotus Breeze development only.

[The Smart Money]

Originally Posted by Adam Caan NMH

Rick,

From the correspondence that I have had, I believe your “Credit Rating” has no bearing on your application for housing finance, as the charge is on the property in Egypt. The ability to afford the repayments is one of the major pre-requisites for finance, so long as the monthly repayment does not exceed 40% of your PROVABLE monthly income you hopefully should have no problems, this of course in addition to criteria quoted earlier.

I am more than happy to answer any questions relating to mortgages for the Lotus Breeze development only.

Hi Adam,

Thanks for the information.

I am 25, the property I have secured will be complete when im 28, the attachement you posted stated 30-65, do you think this will be an issue?


kind regards

steve