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Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment fund (PIF), has announced reduced rates for its long term, fixed-rate (LTFR) mortgages offered to eligible borrowers by its partner banks and mortgage finance companies, it said in a statement on Thursday.
The move aims to support the stability and the growth of the secondary mortgage market and to increase liquidity and facilitate access to domestic and international financing sources.
The company said profit rates on 20 years mortgage have come down from 7.10 percent to 6.25 percent effective April 24.
“The rate drop on our already attractive LTFR products makes home ownership ever more affordable and accessible for Saudi citizens, and on the back of the great work done by the Debt Management Office/Ministry of Finance to extend the tenor of the curve, we will soon provide competitive pricing for even longer tenor,” said Fabrice Susini, CEO of SRC.
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