Financial Regulatory Authority Approves Syndicated Mortgages in Egypt

Egypt's Financial Regulatory Authority (FRA) has authorised mortgage finance companies to offer syndicated mortgage financing, allowing multiple lenders to jointly finance the purchase of high-value properties under a single financing arrangement.

According to the regulator, each participating mortgage finance company must independently comply with the Mortgage Finance Law No. 148 of 2001, its executive regulations and all applicable capital adequacy requirements. Financing agreements will use the FRA's standard contract templates, with provisions allowing all participating lenders to be named in the agreement.

The authority said syndicated financing is intended to help address the challenges created by rising property prices and the financing limits faced by individual mortgage providers, while ensuring lenders continue to comply with concentration limits and capital adequacy standards.

Under the existing regulatory framework, residential mortgage financing for individuals may cover up to 90% of a property's value, rising to 100% under lease-to-own arrangements. Financing for non-residential properties remains capped at 80% of the property's value, alongside limits governing borrowers' repayment capacity and lenders' exposure to individual clients.

According to Islam Azzam, Chairperson of the FRA, the decision followed ongoing consultations with industry bodies to support the growth of Egypt's non-banking financial sector while maintaining market stability and consumer protection. FRA data for the first quarter of 2026 showed the number of new mortgage finance customers declined by more than 21% year on year, although the total value of financing granted increased by more than 17.5%, with residential properties accounting for approximately 78% of all mortgage financing.