Mortgage in Egypt: How to Work Out an Installment Your Income Can Carry
Before asking a bank how much it will lend you, answer a better question: what monthly installment can you carry comfortably? In Egypt, the installment on a mortgage for a home you will live in is generally capped at 40% of your net monthly income, with an overall ceiling on all your debts. This guide explains the rule, works through an example, and compares subsidised schemes with regular bank products.
The 40% rule
Central Bank of Egypt rules on personal lending, as summarised by RegAlert, cap the installment on a housing loan for personal residence under Mortgage Finance Law 148 of 2001 at 40% of monthly income. Income means pay after tax and social insurance, plus other documented income. The subsidised mortgage initiative applies the same logic: installment up to 40% of net income and all obligations up to 50%, according to Elwatan's October 2025 report.
In practice, the bank looks at your net income and existing loans, not just the flat's price. A car loan or personal loan can shrink what is left for your mortgage.
A worked example
Take an employee with a documented net income of EGP 20,000 a month and an existing personal-loan installment of EGP 2,000. These are illustrative numbers, not a bank offer:
- Mortgage cap: 40% of 20,000 = EGP 8,000.
- Total-debt cap: 50% of 20,000 = EGP 10,000.
- Room left after the existing loan: 10,000 minus 2,000 = EGP 8,000.
- Allowed installment: the lower figure, EGP 8,000.
| Loan | Annual rate | Term | Approx. monthly | Approx. total paid |
|---|---|---|---|---|
| EGP 500,000 | 12% declining | 20 years | EGP 5,505 | EGP 1.32m |
| EGP 500,000 | 12% declining | 25 years | EGP 5,266 | EGP 1.58m |
| EGP 800,000 | 12% declining | 20 years | EGP 8,809 | EGP 2.11m |
Five extra years cut the installment by only about EGP 240 but add over EGP 250,000 to the total. The EGP 800,000 loan breaks the EGP 8,000 cap, so this buyer would need a bigger down payment or a cheaper unit. These are standard-formula estimates; your bank sets the real figure.
Subsidised schemes vs regular bank products
The CBE mortgage initiative
According to Elwatan and Enterprise, from October 2025 the rate on new loans under the initiative rose from 3% to 8% for low-income buyers and from 8% to 12% for middle-income buyers, still on a declining basis. QNB Egypt's published middle-income terms include financing up to 80% of value, a minimum 20% down payment, terms up to 25 years, and a fully finished unit for permanent residence, with caps on price and income. Terms can change, so confirm with the bank.
Commercial mortgage products
Outside the schemes, banks lend at commercial rates with shorter terms. Elwatan reported in October 2026 that one QNB Egypt product finances up to 80% for apartments and villas and 65% for chalets, over 2 to 15 years.
Banks vs mortgage finance companies
Banks are supervised by the CBE. Non-bank mortgage finance companies are supervised by the Financial Regulatory Authority. Get any offer in writing and compare total cost.
Checklist before you apply
- Work out your documented net income.
- Add up existing installments and subtract them from the 50% limit.
- Take the lower of that and the 40% limit.
- Save the down payment plus a buffer for fees and insurance.
- Check the unit meets the programme's rules on finishing and registration.
- Ask several lenders for a full repayment schedule.
- Review the contract with a financial or legal professional.
FAQ
Is the 40% based on gross or net salary?
Net: income after tax and social insurance, plus other documented income.
Is a longer term always better?
It lowers the monthly payment but raises the total cost considerably.
Can I get a mortgage on an off-plan unit?
Most mortgage programmes require a ready unit that can be registered. Off-plan buyers usually rely on developer installment plans.
Is the 3% initiative still available?
Reports from October 2025 say new loans moved to 8% for low-income and 12% for middle-income buyers. Check current terms with your bank.
Sources
- RegAlert: CBE rules on consumer and personal housing loans
- Elwatan: Mortgage initiative rate changes (October 2025, in Arabic)
- Enterprise: CBE raises rates on subsidised mortgage initiatives (October 2025, in Arabic)
- QNB Egypt: Middle-income housing finance
- Elwatan: QNB Egypt mortgage loans 2026 (in Arabic)
- Financial Regulatory Authority: About FRA
This guide is for information, not financial advice. On Masari you can compare unit prices, floor plans and payment plans before contacting any seller.