SAMA raises first-home buyers' mortgage limit to 90%

The Saudi Arabian Monetary Authority (SAMA), the Kingdom’s central bank, allowed lenders on Thursday to raise the mortgage loan limit up to 90 percent, from 85 percent of the total value of unit value for Saudi first-time buyers, it said in a statement.

The move aims to spur growth in the home mortgage sector and achieve the housing objectives under the Saudi Vision 2030, while maintaining the banking sector’s financial stability and health.

It will also enable banks and home financiers to increase real estate loans and meet growing market demand, the statement added.

Last year, SAMA raised housing loan limits to 85 percent from 70 percent, according to data compiled by Argaam.