The Saudi Arabian Monetary Authority (SAMA) announced an increase in the maximum limit for mortgage financing granted by banks to citizens for the purchase of their first home, as the Authority decided to raise the limit specified in Article (12) of the Executive Regulations of the Mortgage Financing System from 70% to 85% of the value of the first home, and this is limited to citizens.

For his part, the Governor of the Authority, Dr. Ahmed bin Abdulkarim Al-Khalifi, explained that increasing the maximum financing ratio of the first home’s value for citizens will support growth in the real estate financing sector and align with the national housing goals outlined in the Kingdom’s Vision 2030, without compromising the requirements of banking sector safety or financial stability, and will enable banks to offer a variety of products that serve citizens and meet market needs.

Dr. Al-Khalifi noted that more than two years after the implementation of the financing regulations and their executive rules, the Authority has observed the evolution of the regulatory and supervisory environment surrounding mortgage financing, which enhances protection against the risks associated with this type of financing, thereby safeguarding the rights of all parties involved and maintaining customer confidence in mortgage financing.