Saudi Real Estate Refinance Company extends maturity offering of Long-Term Fixed Rates to 30 years

Saudi Real Estate Refinance Company extends maturity offering of Long-Term Fixed Rates to 30 years

Riyadh, Saudi Arabia – The Saudi Real Estate Refinance Company (SRC), wholly owned by the Public Investment Fund (PIF) announced that the maturity offering of its long-term fixed rates (LTFR – the benchmark for mortgage rates in the Kingdom) has been extended to 30 years.

By extending the maximum eligibility tenor to 30 years from 25 years previously, SRC will further support the development of a robust mortgage market in the Kingdom, providing longer term liquidity to primary originators. It will allow lenders in the Kingdom more flexibility and the ability to offer more sustainable mortgage solutions to borrowers.

SRC does not directly engage with borrowers however through this offering, they will benefit from lower monthly financial payments and the opportunity to increase the amount of the loan borrowed at a fixed rate over a longer period.

Furthermore, the action taken by SRC will contribute to maintaining the increased sector’s contribution to the national GDP and its diversification.

Fabrice Susini, CEO of SRC said: "When we introduced the LTFR in 2018 with tenors from 10 to 25 years to all originators in the Kingdom, we aimed to increasing the offer of fixed rate mortgages to borrowers and encouraging fair pricing. We initiated our drive