Regulatory Alerts2018-01-14
Increase the Maximum Mortgage for Citizens to Own the First Home
The Saudi Central Bank has increased the maximum mortgage financing limit for Saudi citizens purchasing their first home from 85% to 90% of the property value. The directive maintains existing financing caps of 70% for banks and 85% for finance companies on second homes and beyond for all applicants. Institutions are required to strengthen risk management frameworks, monitor credit concentrations, and rigorously verify borrowers' repayment capacities before approving any financing.
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