The Saudi Real Estate Refinancing Company—wholly owned by the Public Investment Fund—announced that it is extending the maturity of long-term real estate financing by a fixed percentage, up to 30 years.

In a statement today, the company explained that the initiative is part of efforts to develop the secondary mortgage market in the Kingdom by providing the necessary flexibility and enabling mortgage lenders to offer affordable financing solutions at a fixed rate while extending maturity periods for borrowers.

It added that the initiative enables citizens wishing to own their own homes to access affordable financing options and longer repayment periods, with the possibility of obtaining increased mortgage financing from lenders at a fixed rate.

She confirmed that in 2018, she launched the benchmark for long-term fixed-rate mortgage financing for lenders in the Kingdom, with repayment periods ranging from 10 to 25 years, in an effort to encourage fair pricing by raising awareness among beneficiaries and supporting their aspirations to own homes, through the establishment of a benchmark for long-term fixed-rate financing to support the stability of the real estate market in the Kingdom and protect beneficiaries from interest rate fluctuations.

She noted that extending the maturity period for long-term fixed-rate mortgage financing from 26 to 30 years underscores the company’s commitment to providing suitable solutions for Saudi families, by creating attractive financing options that offer them greater stability and affordability, in line with the Kingdom’s Vision 2030 to increase the homeownership rate among citizens to 70%.