RIYADH: Public Investment Fund wholly owned Saudi Real Estate Refinance Co., has extended the maturity on its benchmark for mortgages in Saudi Arabia to 30 years, the Saudi Press Agency reported on Monday.
The long-term fixed rate benchmark previously had a maximum eligible tenure of 25 years.
SRC said the move will further support the development of a robust mortgage market in the Kingdom, providing longer term liquidity to primary originators.
The company will allow lenders in Saudi Arabia more flexibility and the ability to offer additional sustainable mortgage solutions to borrowers.
The increased tenure will allow mortgage originators to accelerate the delivery of affordable home financing thereby increasing homeownership among Saudi citizens, SRC’s CEO Fabrice Susini said.
The LTFR confirms the commitment of SRC aligning with the Kingdom's Vision 2030 policies which aim for 70 percent of Saudi families to own homes by 2030, he added.
Speaking to Reuters last March, Susini said around 62 percent of Saudi citizens were homeowners.