The Financial Regulatory Authority (FRA), chaired by Islam Azzam, has authorised mortgage finance companies to provide financing through a syndicated financing model, allowing multiple lenders to jointly finance customers purchasing high-value property units, provided each participating company complies independently with all laws and regulations governing mortgage finance activities.
The decision was communicated by Rehab Taha, Assistant Chairperson of the FRA, in a circular addressed to the Egyptian Mortgage Federation (EMF), confirming the Authority’s approval of syndicated mortgage financing arrangements.
The move follows a request by the Federation to permit multiple mortgage finance companies to jointly extend financing in response to challenges facing the sector, including rising property prices, the limited capital base of some companies and their constrained ability to provide financing within the limits permitted by their capital.
The FRA outlined a number of requirements that mortgage finance companies must meet when participating in syndicated financing transactions. Each company must independently comply with the rules governing financing for both individuals and corporate entities under the Mortgage Finance Law No. 148 of 2001, its executive regulations and all relevant regulatory decisions issued by the Authority. Each participating lender must also comply individually with the capital adequacy standards set out in FRA Board Resolution No. 158 of 2020.
The Authority further stressed that mortgage finance companies must execute financing agreements using the standard contract templates approved by the FRA, with the option of including details of the additional participating lenders in the agreement. Each lender must also ensure that syndicated financing transactions do not result in breaches of the applicable concentration limits for residential mortgage financing to individuals or the prescribed limits for financing individuals and corporate entities for non-residential purposes.
Under FRA Board Resolution No. 111 of 2015, financing granted to individuals for residential purposes must not exceed 90% of the property’s value, except under lease-to-own financing arrangements, where financing may reach 100%. The total financing granted to a single investor, their spouse and their minor children must not exceed 15% of the company’s capital base, while monthly instalments must not exceed 50% of the investor’s income.
For non-residential properties, the resolution stipulates that financing must not exceed 80% of the property’s value, while financing granted to a single investor must not exceed 30% of the company’s capital base.
Azzam said the FRA remains committed to maintaining continuous dialogue with federations representing companies operating in non-banking financial activities to monitor market developments and respond to emerging trends in a manner that balances sector growth, market stability, customer protection and full compliance with the legislative and regulatory framework.
He added that the approval of syndicated financing in the mortgage finance sector was introduced to address challenges arising from rising property prices, their impact on market competitiveness and the limited financing capacity available to some companies and customers. He stressed that syndicated financing operates fully within the existing legislative and regulatory framework and that all participating companies must comply with the stipulated requirements, particularly the applicable capital adequacy standards.
According to FRA statistics for the first quarter of 2026, the number of new mortgage finance customers declined by more than 21% year-on-year, while the total value of financing granted increased by more than 17.5% compared with the same period in 2025. Residential properties accounted for approximately 78% of total mortgage financing extended during the quarter.
