Regulatory Alerts2020-10-22
Self-Build Product Instructions for Retail Mortgage Finance
The Saudi Arabian Monetary Authority has issued binding instructions for the "Self-Build" retail mortgage finance product, requiring licensed financiers to cap administrative fees at one percent or SAR 5,000 (whichever is lower) and disburse specified payments within fifteen days of a customer's request upon meeting contractually defined completion milestones. The directive mandates that the total financing amount be reflected in customer credit records at contract inception, with the actual granted amount clearly stated. Financial institutions must implement these requirements for both new and existing financing agreements within thirty days of the circular's issuance.
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