Saudi Arabian Monetary Authority (SAMA) has raised the loan limit for mortgages from 70 to 85% for first-time Saudi buyers, according to a statement.
SAMA’s Governor Dr Ahmed bin Abdul Karim Al-Khulaifi announced that after two years of applying the funding systems and its executive regulations, the Authority developed the regulatory and supervisory environment associated with the real estate funding.
“This enhancement is to eliminate the risks associated with this type of financing in order to guarantee rights and to maintain relationships of all parties,” he said.
Al-Khulaifi also clarified that the increase in the maximum ratio of the amount of funding from the value of the first housing for the citizens, will support growth in the real estate finance industry. It will also support the integration with the national objectives for housing included in the Kingdom’s 2030 Vision.
He also pointed out that this decision does not violate the integrity of the banking sector or the financial stability requirements, granting the banks the liberty to offer a variety of products to serve the citizen and meet the needs of the market.