The subsidized mortgage loan drops by 1.5% at the bank interest rate.

The General Supervisor of the Real Estate Development Fund, Mansour bin Madi, revealed the contribution of the subsidized real estate loan program to reducing the interest rate for real estate loans provided by banks by more than 1.5%, pointing out that more than 520,000 families have benefited from it since the announcement of the transformation of the real estate fund in June 2017 until the end of the year. In June 2021, the Fund explained that the total beneficiaries of the program during the first half of 2021 exceeded 100,000 beneficiaries at a value of 63 billion riyals, and this included 45,000 contracts for the option of ready-made housing units, 33,000 contracts for self-construction, and 12,000 contracts for units under construction, for its part. The report of the Saudi Central Bank “Sama” said: The new residential real estate financing contracts for individuals recorded a growth of 15% during the first half of this year by about 153 thousand financing contracts, with a value exceeding 79 billion riyals provided by all banks and real estate finance companies, and residential real estate financing contracts were registered 17,752 new contracts for individuals during the month of June, with a value of more than 7.7 billion riyals.

The bulletin indicated that real estate financing for residential villas amounted to 77% of the total financing at a value of 6 billion riyals, and residential apartments about 18% at about 1.3 billion riyals, while financing for the purchase of residential land came at a value of 391 million riyals at a rate of 5%, it is noteworthy that last year 2020 It recorded a record growth in the number of contracts, exceeding 295,590 contracts, worth 140.7 billion, and during 2019 real estate financing reached historical rates that exceeded 3.5 times what was provided in 2018, about 179,217 contracts, worth 79.1 billion.

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