Fixed interest rates protect borrowers against volatility: SRC CEO

Providing customers with fixed-rate loans protects them against the volatility of interest rates, Fabrice Susini, chief executive of Saudi Real Estate Refinance Co. (SRC), recently told Al Arabiya channel.

SRC provides loans through its network of financial institutions, and it aims to increase and diversify its mortgage services for borrowers, he said.

Such long-term mortgage products offer citizens fixed-rate loans for up to 20 years.  

Elsewhere, Abdulelah Al Shaikh, CEO of Saudi Home Loans (SHL), said that long-term fixed-rate loans are suitable for Saudis who expect higher interest rates in the future, while variable-rate loans suit those who foresee lower interest rates.

According to data compiled by Argaam, SRC, owned by the Public Investment Fund, has launched the first tranche of long-term, fixed rate mortgage loans for citizens through various financial institutions across the Kingdom.

The new finance options are now available for all Saudi citizens, who are eligible to get loans, official news agency SPA reported on Wednesday.