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Riyadh – Mubasher: Saudi Real Estate Refinance Company (SRC), a subsidiary of the Public Investment Fund (PIF), has reduced the rates by 40 basis points (bps) for its long-term-fixed-rate (LTFR) mortgages, MENA Herald reported.
This is considered the second rate cut within two months, as the company has extended its maturity offering until 25 years, according to SRC’s statement on Sunday.
“After SRC had dropped the profit rates on 15 to 20 year fixed rate loans in May 2019 to the tune of 50 to 80 bp, it has dropped them further this month from 6.25% APR (3.77% Flat) to 5.89% APR (3.52% Flat) for 20 years, even offering now a 6.00% APR (3.73% Flat) for 25 years. For REDF guaranteed loans, rates have an extra 40bp lower across the maturity spectrum,” MENA Herald said.
The decision comes along with SRC’s commitment to growing the secondary mortgage market in Saudi Arabia as well as facilitating access to mortgages and homeownership for Saudi citizens and bridging liquidity needs of primary originators with objectives of domestic and international investors.
“The rate drop made possible by the strong support of its stakeholders and the whole housing eco-system will indeed enable our partner banks and mortgage finance companies, by passing on the benefits to customers, to see borrowers’ burden alleviated and affordability improved. This will ultimately help us deliver the Vision 2030 housing sector goal of increasing the number of citizens owning their own homes to 70% by 2030,” Fabrice Susini, CEO of SRC, said.
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