The Saudi Arabian Monetary Authority (SAMA) announces the completion of coordination regarding the “#Convenient Mortgage” program for residential real estate financing for a specific category of citizens, in collaboration with the #Ministry of Finance and the #Ministry of Housing. This program aims to provide a residential mortgage financing product that contributes to achieving the national objectives of the mortgage financing policy recently approved by the Council of Ministers, without compromising the requirements of banking sector safety or financial stability.
The Corporation noted that the key features of this program include the beneficiary providing a down payment of 15% of the residential property’s value and allowing commercial banks willing to finance the property to provide 70%of its value in exchange for a mortgage on the property in accordance with the mortgage system. In addition, the bank provides an additional 15% in financingin exchange for a guarantee from the Ministry of Finance to support and assist citizens in owning their homes, bringing the total residential financing from banks to 85% of the property’s value.
Dr. Fahd bin Abdullah Al-Mubarak, Governor of the Saudi Arabian Monetary Authority (SAMA), explained that the various aspects of this program’s requirements had been studied and discussed with the relevant authorities. Al-Mubarak expressed his appreciation for the Ministry of Finance’s support in implementing this program and facilitating home ownership for citizens. Al-Mubarak also thanked the Ministry of Housing for its efforts, cooperation, and participation in coordinating this program. The Authority looks forward to continuing this cooperation with both ministries and the banks to finalize the regulatory procedures, establish the program’s details, and draft the bilateral agreements, and bank contract templates for the “Affordable Mortgage” program, in order to ensure the effective implementation of this product and to safeguard the rights of all parties.
