SAMA announces that it has completed the coordination with the Ministry of Housing and Ministry of Finance to develop the subsidized Mortgage Product to finance residential real estate dwellings to eligible citizens. The product aims at providing a residential real estate product, which will contribute to meeting the national objectives of the real estate finance policy that was approved recently by the Council of Ministers, without compromising the banking sector's soundness or the financial stability.

Under the product, a borrower will be responsible for a down payment of 15 percent of the property's value. Commercial banks will finance 70 percent against mortgaging the property in accordance with the Mortgage Law. Furthermore, the bank will finance an additional 15 percent that would be guaranteed by the Ministry of Finance with the aim of supporting citizens' homeownership. The total real estate finance will be 85 percent of the property's value.

SAMA Governor, Dr. Fahad Almubarak, has said that all aspects of this product have been considered and discussed with the relevant authorities. Almubarak has applauded the Ministry of Finance's support of this product and in facilitating citizens' homeownership. Almubarak has also thanked the Ministry of Housing for the efforts, cooperation and participation in developing the product. SAMA is looking forward to the continuance of this cooperation between the  two ministries and the banks to complete the legal processes, product's details, bilateral agreements and the banks contracts forms of the product, to ensure effective implementation and protection of all parties' rights.