REDF launches financing program for mortgage companies

Logo of Real Estate Development Fund (REDF) 

Real Estate Development Fund (REDF) launched a financing program for mortgage companies through short- and medium-term facilities in favor of mortgage companies, state-owned Saudi Press Agency reported. 

The program aims to stimulate the mortgage market to innovate financing and housing solutions that suit "Sakani" beneficiaries. 

This is within the framework of continuous efforts to improve housing affordability, in order to achieve the objectives of the Housing Program - one of the Kingdom's Vision 2030 programs - to raise homeownership rates to 70% by 2030. 

The program will be launched in conjunction with the signing of a bundle of agreements with authorized mortgage entities during the coming period, REDF’s CEO Mansour Bin Madi, stated. 

The program aims to raise mortgage entities’ contribution and share in the residential mortgage industry, he added. 

Moreover, the program strives to stimulate the mortgage market in line with Saudi Real Estate Refinance Co.’s (SRC) requirements, Madi said, pointing out that the program is one of the supportive programs to enable validated mortgage entities to provide financing options to beneficiaries and encourage them to create innovative financing and housing opportunities. 

The program is an extension of REDF’s programs offered to enhance the fund's effective role in facilitating and providing housing and financing solutions in a sustainable manner. 

It supports and complements housing subsidy programs that guarantee diverse solutions.  

The program will help expand partnerships between mortgage and real estate sectors, to boost the real estate supply in line with the available options, in addition to meet target groups’ needs. 

He stated that REDF periodically reviews its solutions and opportunities, and studies the possibility of developing appropriate and value-added programs, which confirms its keenness to diversify housing support programs.