Regulatory Alerts2024-09-09
Financing Amount to the Value of the First Home of Customers Whose Properties Are Covered Within the Scope of Expropriation
The Saudi Central Bank has authorized real estate financiers to extend mortgage financing for properties subject to government expropriation, allowing the loan amount to align with the statutory ratio for a customer's first home. Before disbursing funds, financiers must verify that each expropriated property falls within the official expropriation scope and qualifies as the beneficiary's primary residence. This circular mandates strict adherence to all existing SAMA regulations while enabling continued financing for affected customers without exceeding the prescribed valuation limits.
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