REDF to launch subsidized financing for existing mortgages

Saudi Arabia's Real Estate Development Fund (REDF) plans to start providing subsidized financing to existing beneficiaries who secured a mortgage loan from any of the finance providers and are still paying installments, state-owned news agency, SPA, has reported, citing the fund’s PR and Information Manager Hamoud Al-Osaimi.

Under the new program, REDF seeks to pay the bank’s mortgage profit for the beneficiaries in order to increase home ownership rates.

The mortgage subsidy will be set in line with the program’s criteria, including the mortgage profit, at SAR 500,000 maximum, paid by the beneficiaries. The subsidy figure will be divided in equal monthly installments for the remaining period.

Beneficiaries can finalize all related measures without contacting the financing provider, and the subsidy will be transferred to the beneficiary’s account instead of the REDF’s after paying the monthly installment to the finance provider.

The subsidized financing program also included financing the purchase of the ready-to-occupy units, off-plan units, the construction of one’s unit, and the mortgage housing loans.