The Real Estate Development Fund confirmed that the “Subsidized Financing” program, which was launched in February of this year, encourages beneficiaries to make their payments on time so they can receive their monthly subsidy.

The Fund explained in a press release that if a beneficiary defaults on a monthly installment to the financing entity, the subsidy is suspended temporarily, not permanently, and the subsidy amount is reinstated retroactively after any outstanding installments are paid, noting that cases where monthly support is terminated include the beneficiary’s death or total disability—in which case the debt to the financing entity is forgiven—and if the beneficiary makes an early repayment of their existing loan with the financing entity, any subsequent interest will be waived.

He noted that the subsidized financing is approved by the Sharia boards of the financing institutions, and is subsidized at a rate of 100% for an amount of 500,000 riyals for those with a monthly income (base salary + housing allowance) from which social security or pension contributions of 14,000 or less have been deducted, and the subsidy ranges from 35% to 100% for a loan amount of 500,000 riyals for individuals with a monthly income (base salary + housing allowance) from which social security or pension contributions exceed 14,000 riyals, Beneficiaries can also take advantage of the subsidized mortgage product to reduce the down payment from 15% to 10%, and they have a two-year grace period from the date their eligibility number is issued to participate in the program.