Saudi to launch 'affordable mortgage' programme
Saudi's central bank has coordinated with the ministries of housing and finance to develop the 'affordable mortgage' scheme
Saudi Arabia's central bank plans to launch an "affordable mortgage" programme to help finance residential real estate purchases by Saudi citizens, Retuers reported.
In a statement, the central bank said coordination with the ministries of housing and finance had been completed to develop the scheme.
No details were revealed regarding a start date for the programme or its size or eligibility requirements,
Under the scheme, home buyers would be responsible for an advance payment of 15% of the property's value.
A further 70% would be supplied by commercial banks, with an additional 15% guaranteed by the Ministry of Finance.
Steps have been taken to boost Saudi home ownership in recent months - including the central bank's decision to license a national home finance company, Bidaya, in December.
A shortage of affordable housing has been a common social and economic grievance among the burgeoning population of young Saudis, Reuters added.