REDF: 18,500 beneficiaries own homes with lowest financing margin

Logo of Real Estate Development Fund (REDF)

The Real Estate Development Fund (REDF) reported that 18,500 persons benefitted from the lowest financing margin solution from September 2023 to the end of Q1 2024.

According to the REDF statement, this financing solution is available in the Saudi real estate market for Sakani beneficiaries, supported by Sakani in partnership with several financing agencies.

The financing solution allowed beneficiaries of residential units under construction and self-construction to secure financing contracts with the lowest financing margin, enabling them to own their homes.

REDF CEO Mansour bin Madi said that the financing solution with a 2.59% profit margin aims to lower financing costs (FCs) and enable beneficiaries to own property with ease and comfort in light of higher interest rates and mortgage costs.

The initiative came as an extension of the REDF’s pioneering role in exploring solutions that support financing challenges to facilitate the beneficiaries’ ownership journey commensurate with their financing capabilities and actual needs.

This is in order to achieve the Housing Program’s objectives, one of Vision 2030 programs.

The CEO explained that, as part of the ongoing efforts, the lowest financing margin came to enhance the opportunities for allowing 12,500 beneficiaries own the housing units under construction.

On the increasing demand for the financing solution, the opportunity was provided for about 6,000 beneficiaries of the self-build product, as the fund enabled financing solutions and benefits, in addition to the lowest financing margin, including immediate non-refundable support of up to SAR 150,000.

REDF provided the financing solution in partnership with Al Rajhi Bank, Saudi National Bank (SNB), Bank Albilad, and Alinma Bank, with the aim of achieving efficiency in providing possible financing solutions for owning suitable housing.

According to the data available on Argaam, the National Housing Company (NHC) announced last January the application of “lowest financing margin” provided by the REDF on all residential projects at a rate of up to 2.59% without specifying a salary cap for the first 10,000 off-plan sales contracts with four local banks.