The Saudi Real Estate Refinance Co. (SRC), owned by the Public Investment Fund, has launched the first tranche of long-term, fixed rate mortgage loans for citizens through various financial institutions across the Kingdom.
The new finance options are now available for all Saudi citizens, who are eligible to get loans, official news agency SPA reported on Wednesday.
“The new loans represent the first part of SRC’s strategy, which aims to strengthen the home finance market through offering broader options and various products to meet the Saudi market needs, Majed Al-Hogail, Minister of Housing and board chairman of SRC, said.
Financiers will offer better options for home ownership through providing 15-to-20 year loans at fixed interest rates.
“SRC’s move will contribute to boosting Saudi ownership of homes to 60 percent by 2020 and 70 percent by 2030” Al-Hogail added.
The long-term, fixed-rate mortgage finance will not only allow Saudi nationals to own their homes, but will also help them save and encourage developers to build more affordable and high-quality homes, stabilizing the housing sector.
Meanwhile, Fabrice Susini, SRC’s chief executive, said the long-term loan installments will be accurately calculated, adding that they are insulated from potential interest hikes going forward.
Khaled Al-Amoudi, supervisor of the Real Estate Development Fund (REDF), said beneficiaries who earn over SAR 14,000 can also get long-term loans at a fixed rate.
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