Saudi REDF says only lower monthly incomes linked to mortgage loans

Saudi Arabia's Real Estate Development Fund (REDF) said home mortgage loans will be only linked to monthly income for those earnings less than SAR 14,000 monthly, Al-Riyadh newspaper reported on Wednesday, citing Ayham Al Yousef, the fund supervisor and advisor general.

In addition, REDF will finance 100 percent of new home value for all applicants with monthly income of less than SAR 14,000.

For beneficiaries who earn over SAR 14,000 monthly, the fund will finance between 35 percent and 100 percent of loans, in light of applicants’ monthly income and the number of family members.

Loan tenures are based on applicants’ age and home financiers, Al Yousef added.

Meanwhile, all applicants who obtained the required approval for loans ahead of 2017 were switched to state-subsidized housing loans.

Housing minister Majid Al Hogail said on Wednesday REDF beneficiaries earning less than SAR 14,000 – representing 85 percent of the fund’s current members – will pay no interest on mortgage loans, Argaam reported.