Many people strive to achieve the goal of owning a home for themselves and their families and securing the long-term stability and comfort that comes with it, and since achieving this goal requires relatively large sums of money, one of the most important solutions is to obtain long-term financing for it through banks and financial institutions!

Long-term finance is defined as financial instruments with a maturity of three years or more. Financial instruments refer to financial contracts between two or more parties that are linked to tradable assets (which can be purchased, settled, created, or exchanged for cash or any similar assets).

Long-Term Profit Margins and Subsidized Mortgage Programs

Perhaps one of the greatest challenges facing those seeking to purchase real estate through long-term financing programs is the cumulative interest rate (margin), especially given the current situation and the global rise in repo rates, This is where the Ministry of Housing and the Real Estate Fund play a crucial and effective role, having provided numerous and diverse solutions to facilitate home ownership for citizens through various programs and initiatives. Perhaps the most significant of these is the government’s assumption of financing costs for the first 500,000 riyals for many borrowersborrowers, in addition to the government’s coverage of real estate transaction taxes—particularly for citizens" first homes—up to one million riyals of the purchase price of the first home. Consequently, a beneficiary seeking financing of up to 500,000 riyals will generally not incur any costs related to the profit margin on real estate financing.

@MounesShujaa

Specialist in real estate financing and performance