The SRC company launched on Wednesday the first tranche of long-term fixed-term mortgage financing, which is offered to Saudi nationals through a group of leading financial institutions in the Kingdom."The new financing options will be available to Saudi citizens from today, and will be reachable, whether they are currently receiving loans or new borrowers, on the condition that they combine the qualification with the criteria of obtaining a mortgage." the company said in a press release following a conference held by the Housing Minister and Chairman of the Board of Directors of the SRC, Majed bin Abdullah Al-Hogail.
His Excellency the Minister of Housing and Chairman of the Board of Directors of the SRC, Mr. Majed bin Abdullah Al-Hogail, said that the launch of the SRC to finance the new housing loans represents the first step in implementing its strategy to open the prospects of the residential finance market in the Kingdom by offering wider financing options and products. Financial support for the Saudi market with its support more liquidity, indicating that this move allows the lending institutions to offer easier for citizens to buy homes.
He explained that the importance of this step comes within the pro-growth policies of stimulating the real estate financing sector and will allow the financing institutions to provide a range of long-term solutions over 15 to 20 years fixed interest rate and will enable funding institutions now to provide more diversified solutions and suit the different segments of society with high demand on the residential property.
His Excellency pointed out that the SRC has facilitated this product to become available to a number of financial institutions in the first tranche, which is one form of effective partnership between the public and private sectors and contributes to the development and GROWTH of our economy, stressing that this step contributes significantly to raise the proportion of home ownership to 60% by 2020 and reach 70% by 2030, according to the objectives of the "Esakn Program" one of the programs to achieve the Saudi vision.
He explained that long-term real estate financing has a fixed interest rate and enables the citizen to own adequate housing. It also enhances his ability to plan, save and obtain housing that meets his future needs. He will also encourage developers to build housing at the right prices and with high quality.
Mr. Khalid Bin Mohammed Al Amoudi, General Supervisor of the Real Estate Development Fund, stressed the importance of cooperation in the development of the Saudi real estate market.
"SRC and Real Estate Development Fund (REDF) are committed to achieving a common objective of financing home purchases at very affordable prices for Saudi citizens, Adding that: "Beneficiaries listed on the the Ministry of Housing and Real Estate Development Fund lists whose salaries are less than 14 thousand riyals are fully subsidized on the loans of 500 thousand riyals, and beyond this figure can take advantage of the support loan with fixed rate through these institutions.
For his part, SABIC Chief Executive Officer Fabrice Sousini said that the Saudi Refinance Company will provide substantial funding to financial institutions that cooperate with it to develop and facilitate mortgage options for Saudis. He praised the efforts of representatives of the Ministries of Housing, Finance and the Saudi Arabian Monetary Agency to achieve this step.Indicating that these bodies are those who mapped out this important step and made efforts to achieve them.
"The role of the Saudi Refinancing Company is to contribute to enabling the middle-income Saudi citizen to obtain house funding, and we know that many of them want to have a clear and far-reaching picture of the monthly installments of their home loans. For this reason we have launched long-term loans with a fixed rate, which meets this need precisely because its premiums can be calculated accurately throughout the loan period, as well as protected from potential increases in interest rates which gives customers a reassurance.
The Saudi Refinance Company's plan is to provide financing to its lending partners in the form of quarterly tranches and will be reviewed and adjusted at market demand. Partner lending institutions will be the only part who engage with clients in the Kingdom. The eight months of refinancing transactions with Deutsche Gulf Finance, Home Finance "Bidaya", Amlak International, Saudi Housing Finance Company" Sahl", National Commercial Bank, SABB Bank and Dar Al Tamleek, and is expected to include more institutions to its partners later. For citizens who are interested in knowing more about the long-term home loan at a fixed rate, contact any of the institutions that the company has announced the agreement with.