In order to facilitate and accelerate procedures, the Real Estate Development Fund announced the official activation of the service of ”converting existing mortgages into subsidized financing” for those registered in the Fund's lists and who have ”unsubsidized“ mortgages from the financing entities participating in the subsidized financing program.

Raising the ownership rate

In this regard, the General Supervisor of the Fund, Khaled bin Mohammed Al Amoudi, said that this service comes within the framework of the state's efforts to contribute to homes in various cities and governorates of the Kingdom and reduce the burden of financing profits on beneficiaries, through a simplified mechanism, characterized by full justice and transparency, in addition to the comprehensiveness of the service.

The General Supervisor of the Fund, Khaled bin Mohammed Al Amoudi, explained. Al Amoudi explained that the subsidy amount will be calculated according to the criteria of the subsidized financing program with the inclusion of the profits of the amount paid by the beneficiary to the financier for a maximum of 500 thousand riyals, in a certain percentage of the amount of profits calculated for this amount, while the subsidy amount will be divided into equal monthly payments for the remaining period of financing and transferred from the Real Estate Fund account to the beneficiary's account after paying the monthly installment to the financier.

Al Amoudi pointed out that the beneficiaries will receive the subsidy amount in equal monthly payments for the remaining period of financing. He pointed out that the beneficiaries of the service are those with a monthly income of 14 thousand riyals or less (basic salary + housing allowance only), indicating that the support will be calculated for them after deducting the value of insurance or retirement by 100% without regard to the number of family members.

Extending the support period

Al-Amoudi added that those with a monthly income of SAR 14,000 and above (basic salary + housing allowance only) will be calculated after deducting the value of insurance or retirement based on (monthly income + number of family members) by a percentage ranging from 35% to 100%.

Al-Amoudi emphasized that the beneficiary will be provided with an extended period of support. <He emphasized that the beneficiary will be able to extend the support period after the end of the financing period with the financier if there is only a short period left. <In December 2018, the Real Estate Development Fund announced the start of one of the new tracks of the “Subsidized Finance” programs, namely the “Conversion of Existing Loan to Subsidized Finance”, a support provided to beneficiaries registered on the Fund's lists, who have existing mortgages with participating financing entities and are still making payments.

Relief for beneficiaries
The official spokesperson of the Real Estate Development Fund said that through this track, the Fund aims to alleviate the burden on the beneficiaries by bearing the profits of the mortgage they obtained, which contributes to increasing the percentage of citizens owning their homes, in line with the Kingdom's Vision 2030.

On the mechanisms and features of the “conversion of the existing loan to subsidized financing” track, he said that the amount of support will be calculated according to the criteria of the subsidized financing program, with the inclusion of the profits of the amount paid by the beneficiary to the financier retroactively for a maximum of 500 thousand riyals, and the amount of support will be divided into equal monthly payments for the remaining period of financing.

One of the advantages of the new financing track is the transfer of support from the Fund's account to the beneficiary's account directly after paying the monthly installment to the financier, with the possibility of extending the support period after the end of the financing period with the financier, and the beneficiary can complete all procedures by visiting the branches of the Real Estate Fund without referring to the financing entity.