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Saudi Arabia's Real Estate Development Fund (REDF) will increase subsidized financing to beneficiaries who earn over SAR 14,000 monthly by 5 percent for every salary increase of SAR 1,000.
This will come in the place of reducing subsidized financing from 100 percent to 35 percent of loans, Saudi Press Agency (SPA) reported, citing REDF supervisor Khaled Al-Amoudi.
“The REDF will finance 100 percent of the new home value for all applicants with monthly income of SAR 14,000,” Al-Amoudi said.
“Those who earn more than SAR 14,000 monthly will have their mortgage financing reduced by 5 percent for every salary increase of SAR 1,000, instead of decreasing the subsidized financing from 100 percent to 35 percent,” he added.
He further noted that beneficiaries, who earn SAR 15,000, will receive financing for 95 percent of the new home, after deducting 5 percent for every salary increase of SAR 1,000.
“The step is aimed at increasing home ownership among Saudi citizens, and eliminating the financing burden, in line with the Saudi Vision 2030,” Al-Amoudi said.
“The beneficiaries who received the subsidized mortgage financing at less than 100 percent will receive compensations based on the new subsidy rate,” he mentioned.
The Saudi REDF had started the subsidy program for existing mortgages last year.
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