Saudi central bank plans government backed mortgage scheme
(MENAFN- The Peninsula) (File photo / Reuters)
RIYADH: Saudi Arabia's central bank plans to launch an "affordable mortgage" programme to finance residential real estate purchases by Saudi citizens it said in
a statement on Sunday.
The central bank said it had completed coordination with the ministries of housing and finance to develop the scheme. It did not specify when the programme would start or give details of its size or eligibility requirements.
Under the scheme home buyers would be responsible for an advance payment of 15 percent of the property's value. Commercial banks would supply a further 70 percent as well as an additional 15 percent that would be guaranteed by the Ministry of Finance.
Saudi authorities have taken steps to boost home ownership in recent months including the central bank's decision in December to license a national home finance company Bidaya.
A shortage of affordable housing has been a common social and economic grievance among the burgeoning population of young Saudis.
Reuters