The Real Estate Development Fund announced today, Tuesday, the official launch of the service (conversion of existing real estate financing to subsidized financing) for those registered on the Fund’s lists and who have obtained (unsubsidized) real estate financing from financial institutions participating in the subsidized financing program.
Khalid Al-Amoudi, the Fund’s General Supervisor, stated that this service is part of the government’s efforts —may God protect it—to contribute to increasing the rate of home ownership among citizens in various cities and provinces of the Kingdom and to alleviate the burden of financing profits on beneficiaries, through a simplified mechanism characterized by fairness and complete transparency, in addition to the service’s comprehensiveness.
He explained that the subsidy amount will be calculated according to the criteria of the subsidized financing program, taking into account the interest on the amount the beneficiary has paid to the lender, up to a maximum of 500,000 riyals, at a specific percentage of the interest calculated on that amount, while the subsidy amount will be divided into equal monthly installments for the remaining term of the financing and transferred from the Real Estate Fund’s account to the beneficiary’s account after the monthly installment is paid to the lender.
Al-Amoudi added that those eligible for the service are individuals with a monthly income of 14,000 riyals or less (base salary + housing allowance only). Their subsidy will be calculated after deducting social security or pension contributions at a rate of 100%, regardless of the number of family members. As for those with a monthly income of 14,000 riyals or more (base salary + housing allowance only) will have their subsidy calculated after deducting social insurance or pension contributions based on (monthly income + number of family members) at a rate ranging from 35% to 100%.
He noted that beneficiaries will be able to extend the subsidy period after the financing term with the lender expires if only a short period remains, emphasizing that the Fund continues to carry out its mission through the most competent staff and the latest systems and methods to achieve sustainable housing development.
