The Cabinet’s decision to extend the “Easy Mortgage” program for an additional three years provided a strong boost to the real estate financing market in the Kingdom, increasing the opportunities for Saudi families to own their first homes. The program eased the down payment burden and opened vast horizons for those benefiting from the housing support, and it represents a fundamental pillar in the journey of housing transformation and achieving the Kingdom Vision 2030 goals of increasing the ownership rate to 70%.
Days ago, the Cabinet, chaired by King Salman bin Abdulaziz Al Saud, the Custodian of the Two Holy Mosques, approved extending the operation of the Easy Mortgage Program for an additional three years, in a strategic move that enhances the ability of Saudi families to own their homes and drives the real estate financing sector towards further growth and expansion.
Supporting and empowering citizens
The Real Estate Development Fund appreciated this decision, stressing that it reflects the wise leadership’s keenness to support and empower citizens, specifically the beneficiaries of housing support, to facilitate their access to their first home, through innovative financing solutions that alleviate their financial burdens and provide them with flexible ownership options.
The Fund's spokesperson, Saeed Al Zahriani, said that the mortgage program directly contributes to reducing the down payment requirement from 10% to only 5 percent, which is one of the most prominent challenges facing citizens when purchasing their first home. Thanks to this facilitation, the beneficiary receives financing of up to 95 percent of the unit's value, provided that its price does not exceed 800,000 riyals, which allows them to choose a ready-made or under construction unit that suits their financial capabilities.
Al Zahri pointed out that the program comes as part of national efforts aimed at increasing the percentage of housing ownership among citizens, in line with the objectives of the housing program – one of the programs of the Kingdom Vision 2030 – noting that the number of beneficiaries of the program since its launch has exceeded 114,638 citizens.
For his part, Minister of Municipalities and Housing Majed Alhakil expressed his thanks to the leadership for the decision to extend the program, stating in a tweet on his Twitter account that the program has opened the doors of stability for more than 114 thousand families, and has greatly facilitated the process of homeownership and reduced the financial burdens on beneficiaries of the housing support program.
Positive repercussions on the real estate sector
The extension of the mortgage program is expected to have a positive impact on the Saudi real estate sector, by stimulating demand for residential units and increasing the flow of real estate financing, especially from the segment of young people and middle-income families who had been having difficulty meeting high down payments.
The program will also raise liquidity levels in the real estate market, and incentivize real estate developers to offer more affordable housing products that meet the program's requirements, thereby enhancing competitiveness and improving quality.
Given the focus on residential units valued at no more than 800,000 riyals, the program is directing the market towards medium- and low-cost housing production, which contributes to addressing the gap between supply and demand in this price range.
The role of mortgage financing and banks
Banks and financing institutions will play a central role in expanding the scope of program utilization over the next three years, by developing new financing products that align with the terms of “easy mortgage,” and providing flexible and accessible solutions for applicants.
This decision is expected to increase the volume of real estate financing granted to individuals and accelerate the growth rate of the housing sector as one of the pillars of sustainable development in the Kingdom.
Increasing the proportion of home ownership
The “Affordable Housing” program represents a cornerstone in the Kingdom’s strategy to raise the housing ownership rate to 70% by 2030, by enabling citizens to own their first homes without significant financial burdens and without the need for huge savings to provide the down payment.
With the extension, more citizens will be able to benefit from the program, which enhances family and social stability and supports the quality of life in the Kingdom’s cities, in line with the directions of the Quality of Life program and the objectives of comprehensive development.
Suitable financing solutions
The Cabinet’s decision to extend the “Easy Mortgage” program is a renewed commitment by the Kingdom to enable citizens to access affordable housing and facilitate access to suitable financing solutions. With continued government support, the real estate sector is heading towards a more mature and sustainable phase, ensuring the needs of citizens are met and achieving the aspirations of the 2030 Vision to provide suitable housing for every Saudi family.
