<The Awareness and Information Secretariat of Saudi banks confirmed that banks are obligated to apply the 70% loan system and have no authority to amend or undermine the decision, and Talaat Hafez, Secretary of Awareness, said that the decision is considered mandatory from the Saudi Arabian Monetary Agency (SAMA) and must be applied according to the applicable system. SAMA had rejected some of the accusations made by investors regarding the low ownership of real estate units by imposing the citizen to pay 30% of the value of the property on those wishing to obtain a housing loan from the bank as a first payment, provided that the bank provides the remaining percentage.

The Saudi Arabian Monetary Agency (SAMA) said that the decision is mandatory and must be applied according to the applicable system. The Saudi Arabian Monetary Agency said that the decision was thoughtful in all respects, and the institution stressed in standing by the citizen not to burden him with debts in the long term that affect his living situation, so this percentage was determined so that the citizen can save it before applying for a loan from the bank to buy the property he wants, which will reduce the percentage of financial costs from the profits that banks receive from this loan, and avoid financial risks that may be difficult for him to overcome

Sources within the Saudi Arabian Monetary Agency said that the decision was thoughtful from all aspects. <Sources within the organization noted the importance of gradualness in ambitions and dreams and the citizen must develop a culture of saving in order to start from a strong base to build the future home through two options that can contribute to realizing the dream of owning a home: The first option: Continue saving until the family has more than 30% of the value of the house, and the second option is to think about owning land, and then start building the house.

<SAMA sources confirmed that renting in some cities is much better than owning a house that the family pays for it for 20-25 years, and the source said that one of the reports of the Riyadh Municipality shows that the residential vacancy in existing buildings is about 6%, and it is now on its way to sale, if we know that the profit margin percentage required by the owner of the property «the building» is 40%. 40%, pointing out that not in all cases the decision to own a house is a rational decision, but the obsession with «ownership» is dominating the mindset of the Saudi citizen.

It is worth mentioning that the Kingdom began implementing the decision not to allow commercial banks operating in the Kingdom to support citizens with an amount of more than 70% of the actual value of the property since the beginning of December 2014, where the person wishing to obtain a loan is obliged to provide 30% to the bank in order to obtain the value of the property that has been selected and subject to an evaluation from specialized authorities by the bank itself, which will retain ownership of the property until the borrower pays his debts or suffers health issues leading to disability or death where the property is transferred in the name of the borrower or his heirs.