The Real Estate Development Fund announced that the Affordable Mortgage Program is one of the leading financing solutions that makes it easier for housing subsidy beneficiaries to purchase their first home by reducing the down payment burden. The required down payment has been reduced from 10% to just 5%, which speeds up the home-buying process and reduces the financial burden on citizens.
Benefits of the Affordable Mortgage Program
The the Affordable Mortgage Program enables beneficiaries to purchase a ready-to-move-in or under-construction housing unit, with a wide range of financing options designed to suit their varying financial capacities and address their diverse needs.
The Fund explained that The Affordable Mortgage Program increases beneficiaries“ ability to obtain financing covering up to 95% of the housing unit’s value, provided that the price does not exceed 800,000 riyals, giving beneficiaries greater flexibility in choosing the right home for themselves and their families.
In a move that reflects the government’s commitment to promoting homeownership opportunities, the Council of Ministers approved, last July, an extension of the ”Concessional Mortgage“ program for an additional three years, allowing a larger number of citizens to benefit from this incentive-based financing initiative.
With this extension, the ”Real Estate Development Fund” reaffirms its ongoing commitment to supporting citizens and achieving the housing program’s objectives under Saudi Vision 2030, which aims to sustainably increase the rate of homeownership among citizens while providing innovative solutions and effective financing partnerships.
