Saudi’s central bank plans to launch an ‘affordable mortgage’ programme

Government-backed mortgage scheme will finance residential real estate purchases by Saudi citizens
Saudi’s central bank plans to launch an ‘affordable mortgage’ programme
By Reuters
Sun 28 Feb 2016 06:13 PM

Saudi Arabia's central bank plans to launch an "affordable mortgage" programme to finance residential real estate purchases by Saudi citizens, it said in a statement on Sunday.

The central bank said it had completed coordination with the ministries of housing and finance to develop the scheme. It did not specify when the programme would start or give details of its size or eligibility requirements.

Under the scheme, home buyers would be responsible for an advance payment of 15 percent of the property's value. Commercial banks would supply a further 70 percent, as well as an additional 15 percent that would be guaranteed by the Ministry of Finance.

Saudi authorities have taken steps to boost home ownership in recent months, including the central bank's decision in December to license a national home finance company, Bidaya.

A shortage of affordable housing has been a common social and economic grievance among the burgeoning population of young Saudis.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.