The Public Investment Fund, the sole owner of the Saudi Real Estate Refinance Company, revealed its plan to increase the maturity duration of long-term real estate financing at a fixed rate (LTFR)—the benchmark for real estate financing rates in the Kingdom—to 30 years.
Providing the necessary flexibility and enabling real estate finance agencies to offer simple financing solutions at a fixed rate while extending the maturity periods for beneficiaries, the company explained in a statement today that the initiative fits within the framework of developing the secondary real estate finance market in the Kingdom. This is reflected in the growth in the financing portfolios of the parties.
In addition to aiding in economic diversification and increasing GDP, real estate financing.
The project also offers easy financing choices and longer payment terms to individuals who want to purchase their homes, with the potential to expand the amount of real estate finance provided by the lending institutions at a fixed rate.
Fabrice Sosini, the CEO of the Saudi Real Estate Refinancing Company, stated that the company “launched the reference standard for long-term real estate financing at a fixed rate for the financing bodies in the Kingdom in 2018, with repayment periods ranging from 10 to 25 years, in an effort to encourage fair pricing by raising beneficiaries’ awareness and fostering their aspirations to own homes by setting a reference standard for long-term financing at a fixed rate in the Kingdom.”
He emphasised that the Saudi Real Estate Refinancing Company’s commitment to finding appealing financing options that give Saudi families more stability and affordability, in line with the Kingdom’s vision, is confirmed by the extension of the maturity period for long-term real estate financing at a fixed rate from 26 to 30 years.
The launch of this programme is consistent with the present variety of capital and risk management solutions offered by the company to the financing agencies by 2030 in raising the percentage of citizen ownership to 70%.
With the “Saudi Real Estate Refinance,” the 30-year maturity period for long-term fixed-rate financing is possible.
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