SAMA raises mortgage loan limit to 85% for Saudi banks

The Saudi Arabian Monetary Authority (SAMA), the kingdom’s central bank, allowed lenders on Thursday to raise the mortgage loan limit to a maximum of 85 percent, from 70 percent of the total unit value, Ahmed Al-Kholifey, SAMA governor, said in a statement obtained by Argaam.

Raising the finance limit for citizens will spur growth in the home mortgage sector, as part of the housing ministry’s goals set under Saudi Arabia’s Vision 2030 plan.

The new limit will also allow banks to offer various products and meet market demand, Al-Kholifey added.

Last March, SAMA allowed mortgage companies to contribute a greater share of funding for home purchases, raising the maximum permitted contribution to 85 percent from 70 percent of the value of the house.

The move was part of a series of steps taken by the Saudi government to ease financing for home ownership.