The Saudi Real Estate Refinance Company announced the extension of the maturity period of the long-term fixed-rate mortgage (LTFR – the reference standard for the real estate finance rate in the Kingdom) to reach 30 years instead of 26.
The company, which is wholly owned by the Public Investment Fund, explained that this initiative comes within the framework of developing the secondary real estate finance market in the Kingdom, by providing the necessary flexibility and enabling real estate finance agencies to provide easy financing solutions at a fixed rate while extending the maturity periods for beneficiaries, which is reflected in the volume of growth in The financing portfolios of the real estate finance agencies, in addition to their contribution to economic diversification and the growth of the volume of GDP.
This initiative also allows citizens who wish to own their homes; Facilitating financing options, with opportunities to repay over a longer period and the possibility of obtaining an increase in the volume of real estate financing by financing agencies at a fixed rate.
The CEO of the Saudi Real Estate Refinance Company, Fabrice Socini, stated that extending the maturity period of long-term mortgage finance at a fixed rate from 26 to 30 years; The company affirms the company’s commitment to providing appropriate solutions to Saudi families, by finding attractive financing options that provide them with more stability and affordability, in line with the objectives of the Kingdom’s Vision 2030 by increasing the percentage of citizens’ ownership to 70%.