Mortgage finance funds provided by companies rise to LE 1.1B: EFSA

CAIRO – 25 December 2017: Total funds provided by mortgage finance companies rose to LE 1.1 billion during the first ten months of 2017, up from LE 676.9 million during 2016, Chairman of EFSA, Mohammed Omran, said in a statement on Monday.

The mortgage finance given by companies since the beginning of mortgage activity in Egypt amounted to LE 8.1 billion at the end of October 2017, compared to LE 6.5 billion in October 2016, an increase of 25 percent, said Omran.

Refinance mortgage processes made by Egyptian Mortgage Refinance Co reached LE 55 million during the first ten months of 2017, and nearly LE 1.08 billion since the start of mortgage activity in Egypt.

New mortgage finance contracts hit 1,497 contracts from January to October 2017, against 1795 contracts during the corresponding period of 2016.

Meanwhile, the whole number of mortgage finance contracts since the beginning of activity till end of late October reached 43.5 thousand contracts, against 41.2 thousand contracts at October of 2016.

Individuals with a monthly income of more than LE 3,500 took 99.4 percent of the total mortgage finance from January to October 2017, while the same category got 98 percent of the mortgage finance provided during the corresponding period of 2016.

The value of lease contracts increased to LE 22 billion during the first ten months of 2017, compared to LE 16.7 billion for the same period last year. This is an increase of 31percent, the statement noted.

Real estate and lands came first among other activities regarding getting lease finance, with contracts worth LE 15.5 billion representing 71 percent of total activity’s contracts, followed by transport vehicles contracts which were worth LE 1.44 billion.

Heavy equipment ranked the third activity, which obtained lease finance with contracts worth LE 1.43 billion, followed by activity of production lines with contracts worth LE 1.3 billion.

The number of leasing companies registered in the authority amounted to 226 companies by the end of October 2017.