SRC extends maturity of LTFR mortgage to 30 years

Logo of Saudi Real Estate Finance Co.

Saudi Real Estate Refinance Co. (SRC), wholly owned by the Public Investment Fund (PIF), announced that the maturity offering of its long-term fixed rates (LTFR) – the benchmark for mortgage rates in the Kingdom – has been extended to 30 years.

By extending the maximum eligibility tenor to 30 years from the earlier 25 years, SRC will further support the development of a robust mortgage market in the Kingdom, providing longer term liquidity to primary originators, SRC said in a statement.

"It will allow lenders in the Kingdom more flexibility and the ability to offer more sustainable mortgage solutions to borrowers," it said.

Furthermore, the action taken by SRC will contribute to maintaining the increased sector’s contribution to the national GDP and its diversification.

"With the extension of the LTFR offering from 26 years to up to 30 years maximum tenor, we are continuing to demonstrate our commitment to supporting Saudi borrowers with an attractive solution focusing on stability and affordability in a very challenging environment," said CEO Fabrice Susini.

The increased tenor will allow mortgage originators "to accelerate the delivery of affordable home financing thereby increasing homeownership among Saudi citizens, aligning with the objectives of Vision 2030's homeownership program," he added.