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Bidaya Home Finance and Saudi Real Estate Refinance Co. (SRC) launched a fixed rate leasing product in support of the Kingdom’s mortgage market.
The move aims to help increase home ownership among Saudis, Bidaya CEO Mazin Al-Ghunaim said during a joint press conference.
The new financing product has a fixed interest rate along the leasing period, as the interest rate is calculated only once without any additional annual raises or any impact by Saudi Arabia's interbank interest rate (SAIBOR), he said.
The new product aims to meet beneficiaries’ aspirations of owning their homes, Fabrice Susini, chief executive of SRC said.
The product targets Saudis who wish to own their first home under eased terms and fixed monthly installments.
According to data compiled by Argaam, 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.
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