F.A.Q.


1- What happens if the client hasn't been able to pay the mortgage installments?

2- What should your proof of income include?

3- What is the importance of insurance policies?

4- What is the tripartite contract?

5- What are the benefits of taking out a mortgage to finance my home purchase?

6- Who is eligible for mortgage financing?

7- How long does it take to approve a mortgage?

8- What is the maximum loan amount can I take?

9- Does Tamweel have the right to make maintenance spot checks?

10- How can you benefit from the mortgage financing Guarantee and Subsidy Fund
(GSF)?


11- Is it obligatory to register property after obtaining finance?

12- Is it possible for pensioners to get mortgages?

13- Is it possible that the contract is in the name of both spouses even if one only is
obliged to make the payments?


14- Is it possible that the purchaser writes checks in case he is unable to provide all
income evidences?


15- Is it possible to add a parent's or spouse's income if the applicant does not
have a job?


16- Where do I go to make my property installments?

17- Is it possible to rent or sell the property during the mortgage time?

18- Is it possible to fulfill installments in a single payment?

19- Is it possible to present other income evidence?

20- Shall insurance be paid on one installment or during the mortgage term?

21- Should the client conclude a power of attorney in favor of Tamweel prior to

signing the unit contract?


22- Should the selected property be registered?

23- What are the required documents to get financing?

24- What does foreclosure mean?

25- Who is an appraiser?


1- What happens if the client hasn't been able to pay the mortgage installments?

     In case the client is unable to pay, Tamweel should be informed immediately, since delinquency of more than two installments could result in Tamweel taking foreclosure measures according to the provisions of the Real Estate Finance Law no. 148 of 2001, its executive regulations and amendments.


2- What should your proof of income include?

     If you are employed in the private sector, the public sector, government entity or other, then the income statement should include the salary breakdown (net and gross), position, employment date, employer's seal and signature of the manager in charge. If you are a professional, you can present a certificate from the Taxation Department or a chartered accountant that indicates your income subject to taxation within the preceding three years or any other document accepted by Tamweel.


3- What is the importance of insurance policies?

     On securing mortgage financing, a life insurance policy shall be taken out to cover death, or total or partial disability. In such cases, the insurance company shall pay the balance of the mortgage and the property’s ownership shall transfer to a beneficiary specified by the borrower. In addition, the property shall be insured against fire so as to be restored to its initial condition for the purchaser and Tamweel.


4- What is the tripartite contract?

     Tripartite means 3-way. A tripartite agreement is one among 3 parties: the seller, the purchaser and the financier.
What are the benefits of taking out a mortgage to finance my home purchase?
• Longest possible payment duration compared to any other financing system (up-to 20 years).
• Ability to finance up to 80% of the residential unit value.
• Possibility of early pre-payment of the loan.
• Mortgage conditions that best fit your situation, such as advance payment and monthly installments.
• Possibility of selling the residential unit at the current market value.


5- What are the benefits of taking out a mortgage to finance my home purchase?

• Longest possible payment duration compared to any other financing system (up-to 20 years).
• Ability to finance up to 80% of the residential unit value.
• Possibility of early pre-payment of the loan.
• Mortgage conditions that best fit your situation, such as advance payment and monthly installments.
• Possibility of selling the residential unit at the current market value.


6- Who is eligible for mortgage financing?

     Everyone who is at least 21 years old has the intention to purchase a residential unit and can present evidence of sufficient income is eligible to apply for a mortgage loan.


7- How long does it take to approve a mortgage?

     Once all legal and verification documents are submitted, the loan approval process usually takes approximately one week.


8- What is the maximum loan amount can I take?

     The monthly repayment amount has specific constraints to make sure that you are not taking a more expensive mortgage than you can afford. These percentages cannot be exceeded, and they are as follows:
• 25% of your monthly income if you are a low-income earner and a beneficiary of the Mortgage Finance Guarantee and Subsidy Fund.
• 40% of your monthly income if you are not a beneficiary of the Mortgage Finance Guarantee and Subsidy


9- Does Tamweel have the right to make maintenance spot checks?

     Yes, Tamweel can make spot checks on the unit to monitor the investment.


10- How can you benefit from the mortgage financing Guarantee and Subsidy Fund (GSF)?

     The Guarantee and Subsidy Fund (GSF) grants subsidizes to low-income individuals wishing to buy housing units, by lowering the mortgage to an affordable level.
o The Fund’s current contribution is 15% of the value of the unit to a maximum of LE 10,000.
o This form of subsidy reduces the monthly installments to a level not exceeding a quarter of the monthly income of the homebuyer.


11- Is it obligatory to register property after obtaining finance?

     This is to preserve your rights and have official evidence of ownership of the property in case of future disputes. Registering the property allows it to be used as collateral until a mortgage is paid down. After registration, the property owner's role ends and you become the new owner. The relationship between the borrower and Tamweel lasts until the final mortgage installment payment is done.


12- Is it possible for pensioners to get mortgages?

     It is possible to secure a mortgage for an individual in early retirement, provided the total financing value is paid before the client reaches the maximum age which is 65 years old.


13- Is it possible that the contract is in the name of both spouses even if one only is obliged to make the payments?

     Yes.


14- Is it possible that the purchaser writes checks in case he is unable to provide all income

     evidences? Checks are used as a means of collecting installments but not as collateral. Promissory notes or bills can be drafted as collaterals also, but either of them is not considered a source for increasing the finance.


15- Is it possible to add a parent's or spouse's income if the applicant does not have a job?

     Yes.


16- Where do I go to make my property installments?

     An account for every client shall be opened in the premises identified by Tamweel.


17- Is it possible to rent or sell the property during the mortgage time?

     Yes, through informing Tamweel of the desire to sell the property or rent it out.


18- Is it possible to fulfill installments in a single payment?

     The outstanding balance could be cleared with a single payment to reduce the financing cost or by making more than one installment payment in agreement with Tamweel, but a penalty will be applied on the investor.


19- Is it possible to present other income evidence?

     Yes, such evidence can include deposits, investment certificates, and contracts of other apartments, agricultural-lands ownership contracts, tax declaration or a certificate from a chartered accountant.


20- Shall insurance be paid on one installment or during the mortgage term?

     The insurance premium is added to the monthly mortgage installments throughout the life of the mortgage.


21- Should the client conclude a power of attorney in favor of Tamweel prior to
signing the unit contract?


     Yes, a power of attorney should be concluded in order to proceed in the registration and mortgage procedures to the benefit of Tamweel.


22- Should the selected property be registered?

     Yes, you should only consider buying property that is already registered or is subject to registration. The appropriated lands with no ownership deeds, properties in the informal regions, and violating buildings are deemed not subject to registration.


23- What are the required documents to get financing?

1. Specify your resources
     Determine how much money you have to spend on a home. You need to consider both what lump sum you have now for the down-payment, and also how much money you'll have on an ongoing basis for the regular installments in the future. To determine what size of mortgage you may qualify for, try out our Mortgage Calculator.

2. Select the appropriate property
     Select the property that suits you through any person or private or public sector company or cooperatives. This is generally a long-term investment, so be sure to think ahead so that you buy a home that can meet your future needs as well as what you need currently. Make sure that you only consider properties that are registered or could be registered.

3. Prepare the required documents
     You will need the following documents about yourself, to prove your identity and your ability to repay the mortgage:
• Personal ID card, or National ID or passport.
• Income verification document
     If you are an employee, you can get salary details from your employer.
If you are professional, you can get a certificate from the tax authorities indicating the income used as a base for tax assessment during the last three years.
Any other documented income to be accepted by the financing agency.
In addition, you will also need documents related to the property.
     1. A copy of the proof of ownership provided that the property is registered or could be registered.
     2. A certificate of all transactions related to the property during the last ten years. This certificate can be retrieved from the Real Estate Publicity Department REPD. Real estate form 19 is a standard form customers complete by hand to retrieve transactions on a given property.
     3. A copy of the building permit of the property to be financed.
     4. Property tax certificate.
You can get these documents from the property owner, or have the property owner submit them directly to the financier or bank in your presence, or have the Mortgage Finance Broker submit the finance file that includes all documents.

4. Select a Mortgage Finance Broker
     A Mortgage Finance Broker helps you choose the property that suits your financial resources and calculate the installments you can afford to pay and the payment duration.
You can receive a list of Mortgage Finance Brokers approved by the EFSA from either the EFSA (link to contact information) or the financier. You may want a broker from the area you live in, or perhaps you'd prefer having a broker from the area where the property you want to buy is located.
The services provided by the Mortgage Finance Broker are free of charge, since the finance agency pays for brokerage fees.

5. Apply for mortgage at financing agencies
     You need to complete the mortgage application form and submit it along with the required documents mentioned earlier, or seek the assistance of the Mortgage Finance Broker to fill the finance form and submit the documents on your behalf. Remember that the services of the broker are free of charge.

Upon receiving your application and supporting documentation, the financing agency verifies them and examines the application for financing. You or your Mortgage Finance Broker will be notified as to whether your application has been accepted or rejected.

6. Get the property appraised
     After the finance agency approves funding for the property, you need to hire an appraiser listed at the EFSA (link to contact information), to determine the fair market value of the property. The investor will pay the appraisal costs; the related expenses will be added to the financing amount you will repay in the future.

7. Sign the contract
     After the appraisal is done, the owner of the property will need to sign the property ownership contract. The contract will be a trilateral finance agreement using the official form developed by EFSA, then signed by you (the investor), the property owner and the financing agency. You must keep this contract with your files for future reference.

8. Buy insurance
     This is an optional but highly recommended step. House insurance protects you and your family in case of inability to pay due to death or disability. Insurance payments may be able to be included in your mortgage installments through the finance agency.

9. Get your property registered
     In order to maintain and preserve your rights of ownership of the property you have purchased, and to avoid any related future disputes, you need to register your new property.


24- What does foreclosure mean?

     It is the process of transferring ownership of the property by auction to another purchaser in favor of the financier in fulfillment of the first purchaser's debt


25- Who is an appraiser?

     The person who determines a property’s fair value, and is licensed and certified as an appraiser with the EFSA.