The Central Bank of Egypt (CBE) hiked the interest rates offered under its two subsidized mortgage finance initiatives, according to a circular seen by EnterpriseAM. The rate on the initiative for middle-income borrowers following the cabinet’s green light has been raised to a declining 12% from 8%, while the rate on the program for low-income borrowers increased to a declining 8% from 3%. The decision applies to all new loans issued under the two initiatives as of 15 October 2025, with no retroactive effect on existing financing.

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The central bank said the revision comes as part of a broader review of the state’s mortgage finance programs to align with current economic conditions. The change follows multiple rate hikes and an overall tightening of monetary policy aimed at curbing inflation and restoring balance in credit pricing.

The initiatives had long offered highly subsidized financing for homebuyers, allowing repayment periods of up to 30 years at fixed declining rates. Under the new terms, new borrowers will pay higher monthly installments, though existing beneficiaries will continue servicing loans at their original rates. Commercial banks implementing the initiatives are expected to adjust their lending pipelines and marketing accordingly.

IN OTHER BANKING NEWS-

CIB is preparing to launch a fully digital bank in Egypt before the end of 2026, CEO Hisham Ezz Al Arab told Asharq Business. A holding company abroad — likely in the UAE or UK — will establish the bank in Egypt and then in other countries, he added.

ICYMI- The bank will apply for a digital banking license early next year, Ezz Al Arab said last week, adding that it will not take long to obtain the license, as the bank has been working on developing its platform for over a year.

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