REDF to start subsidy program for existing mortgages

Saudi Arabia's Real Estate Development Fund (REDF) will start providing subsidized mortgage financing to existing beneficiaries, the official Saudi Press Agency (SPA) reported, citing REDF supervisor Khaled Al-Amoudi.

The step is aimed at increasing home ownership among Saudi citizens, and eliminating the financing burden.

Under the new program, REDF will cover the interest rate of existing mortgage loans issued by any financial institution, valued at a maximum of SAR 500,000, Al-Amoudi said.

The subsidy amount will be divided into equal monthly payments for the remaining term, and will be transferred from the REDF to the beneficiary’s account.

The REDF will finance 100 percent of the new home value for all applicants with monthly income of less than SAR 14,000, Al-Amoudi said.

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