A few days ago, the Cabinet, headed by the Custodian of the Two Holy Mosques, King Salman Abdulaziz Saud, agreed to extend the work of the Easy Mortgage Program for an additional three years. A few days ago, the Council of Ministers, chaired by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, agreed to extend the Easy Mortgage Program for an additional three years, in a strategic step that enhances the capabilities of Saudi families to own their homes and pushes the mortgage sector for further growth and expansion.
Supporting and empowering citizens
The Real Estate Development Fund praised this decision, stressing that it reflects the keenness of the wise leadership to support and empower citizens, especially the beneficiaries of housing support, to facilitate their access to their first home, through innovative financing solutions that ease their financial burdens and provide them with flexible ownership options.
<Saeed Al-Zahrani, the Fund's spokesperson, said that the Easy Mortgage Program directly contributes to reducing the burden of the down payment from 10% to only 5%, which is one of the most prominent challenges facing citizens when buying their first home. Thanks to this facilitation, the beneficiary receives financing up to 95% of the value of the housing unit, provided that its price does not exceed SAR 800,000, allowing him to choose a ready or under-construction unit that suits his financing capabilities.
Al Zahrani also pointed out that the program is designed to reduce the burden of the down payment from 10% to only 5%. Al-Zahrani pointed out that the program comes within the national efforts aimed at raising the rate of home ownership among citizens, in line with the targets of the Housing Program - one of the programs of the Kingdom's Vision 2030 - pointing out that the number of beneficiaries of the program since its launch exceeded 114,638 citizens.
For his part, Minister of Municipalities and Housing Majid Al Haqeel thanked the leadership for the decision to extend the program, stressing in a tweet on his Twitter account that the program opened the doors of stability for more than 114,000 families, greatly facilitated the journey of ownership and eased the financial burdens on the beneficiaries of housing support.
Minister of Municipalities and Housing Majid Al Haqeel thanked the leadership for the decision to extend the program.
Positive implications for the real estate sector
The extension of the soft mortgage program is expected to reflect positively on the Saudi real estate sector, by stimulating demand for housing units and increasing the movement of real estate financing, especially from the youth and middle-income families who had difficulty in providing high down payments.
The program is expected to stimulate the demand for housing units and increase the movement of real estate financing, especially from the youth segment and middle-income families who had difficulty in providing high down payments. The program will also raise the level of liquidity in the real estate market and motivate real estate developers to offer more affordable housing products that meet the program's conditions, enhancing competition and raising quality.
By focusing on housing units that do not exceed SAR 800,000, the program directs the market towards medium and affordable housing production, which contributes to addressing the gap between supply and demand in this price range.
The program will increase the level of liquidity in the real estate market and stimulate real estate developers to offer more affordable housing products that meet the conditions of the program, which enhances competition and raises quality.
The role of real estate finance and banks
Banks and financial institutions will play a pivotal role in expanding access to the program over the next three years, by developing new financing products in line with the terms of the “Easy Mortgage”, and offering flexible and easy solutions to applicants.
Banks and financial institutions will play a pivotal role in expanding access to the program over the next three years. This decision is expected to increase the volume of mortgage financing granted to individuals and accelerate the growth of the housing sector as one of the pillars of sustainable development in the Kingdom.
Raising the homeownership rate
The Affordable Mortgage Program is a cornerstone of the Kingdom's strategy to raise the homeownership rate to 70% by 2030, by enabling citizens to own their first homes without significant financial burdens, and without the need for huge savings for the down payment.
With the extension, more citizens will be able to benefit from the program, enhancing family and social stability and supporting the quality of life in the Kingdom's cities, in line with the directives of the Quality of Life Program and the overall development goals.
With the extension, more citizens will be able to benefit from the program, enhancing family and social stability and supporting the quality of life in the Kingdom's cities.
Suitable financing solutions
<The Cabinet's decision to extend the "Easy Mortgage" program is a reaffirmation of the Kingdom's commitment to empowering citizens with decent housing and facilitating access to appropriate financing solutions. With continued government support, the real estate sector is moving towards a more mature and sustainable phase that ensures meeting the needs of citizens and realizing the aspirations of Vision 2030 to provide adequate housing for every Saudi family.
