Latest Details on Extending the Facilitated Mortgage Program by the Real Estate Development Fund in Saudi Arabia

The Saudi Council of Ministers recently approved an extension of the Facilitated Mortgage Program for an additional three years, during its session chaired by His Majesty King Salman bin Abdulaziz in Jeddah. This decision reflects the leadership’s commitment to supporting citizens and enabling Saudi families to own their first homes through a variety of financing solutions. The Real Estate Development Fund praised this step, considering it confirmation of the leadership’s interest in easing the journey to first–home ownership for beneficiaries of the various housing support programs.

Minister of Municipal, Rural Affairs and Housing Majid bin Abdullah Al-Hogail commented on the decision via his X account, noting that the Program has reduced the down-payment burden for housing–support beneficiaries and facilitated first–home ownership, opening the door to stability for more than 114,000 Saudi families since its launch. This comes within the targets of the Housing Program—one of the Vision 2030 initiatives—aimed at raising the home-ownership rate among citizens and enhancing housing stability for Saudi families.

What Is the Facilitated Mortgage Program?

The “Musa’ir” Facilitated Mortgage Program is one of the financing initiatives offered by the Real Estate Development Fund in partnership with financial institutions. It aims to ease the path to first–home ownership for Saudi citizens by reducing their financial burdens. Launched a few years ago as part of the efforts to achieve Vision 2030 in the housing sector, the program has produced tangible results, enabling tens of thousands of families to own their first homes. It focuses on supporting citizens by lowering the required initial down payment when purchasing a home, thereby making mortgage financing more accessible and flexible for eligible groups.

Program Advantages and Its Role in Supporting Ownership

The Facilitated Mortgage Program offers several financial advantages that make home ownership easier for beneficiaries. It reduces the required down payment for purchasing a first home from 10% to just 5% of the property value. This substantial reduction lightens the financial burden on housing support beneficiaries, enabling a wider segment of citizens to meet the requirements for buying their first home more quickly.

Additionally, the program increases the available financing ratio for beneficiaries to 95% of the total unit price—whether the property is ready or under construction—provided its price does not exceed SAR 800,000. This feature allows families without sufficient savings for a down payment to enter the home–ownership market with very manageable financial contributions.

The Facilitated Mortgage Program is also part of a package of initiatives launched by the Real Estate Development Fund to achieve the Kingdom’s Vision 2030 housing targets. It supports the goal of raising the home-ownership rate to 70% by 2030 through facilitating financing and lowering down payments. The program also contributes to stimulating demand for housing units and sustainably activating the real estate sector, benefiting the macro-economy by boosting the finance and construction sectors and increasing home-ownership rates among citizens.

Eligibility Criteria for the Facilitated Mortgage Program

Certain conditions must be met by both the beneficiary and the property to qualify for the reduced down payment and support provided by the program. The eligibility criteria are as follows:

• The beneficiary must have a family (be supporting dependents).
• The beneficiary must be at least 25 years old.
• The home to be purchased must be the beneficiary’s first residential property (no prior home ownership).
• The unit’s price must not exceed SAR 800,000.
• The unit must be part of projects approved by the Ministry of Municipal, Rural Affairs and Housing and the Real Estate Development Fund.

Economic and Financial Impact of Extending the Facilitated Mortgage

The three-year extension of the Facilitated Mortgage Program represents a strong boost to the Saudi real estate market in the coming period. It is expected that the program’s continuation will increase demand for home ownership, especially among middle- and low-income families who benefit from its facilitation. This additional demand could stimulate both the real estate development and banking finance sectors, as banks and financing companies work to meet the needs of a larger segment of citizens wishing to own homes under reduced down payments and supported financing. Meanwhile, the sustained rollout of public and private housing projects will help balance market supply, curbing unjustified price increases and maintaining market stability over the medium term.

From a broader economic perspective, the program achieves developmental goals beyond merely increasing individual ownership rates. Home ownership by Saudi families enhances their financial and social stability, reduces reliance on rental markets and associated fluctuations, and contributes to wealth building through real estate assets. It also raises quality of life in line with the Housing Program targets of Vision 2030.

The Facilitated Mortgage Program also encourages construction and real estate development, positively impacting the economy by creating new job opportunities in construction and related sectors, and boosting demand for building materials and engineering services. This cycle of activity helps achieve sustainable economic growth and diversify income sources under the National Transformation Program.

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In conclusion, the extension of the Facilitated Mortgage Program is a strategic step within a package of policies aimed at enabling the largest possible number of Saudi families to own their first homes. With the direct and indirect government support provided by the program and the continued effective partnership between the Real Estate Development Fund, commercial banks, and financing institutions, the program is expected to achieve its financial and social targets over the next three years. Thus, the Kingdom’s housing sector moves steadily toward its future vision of increasing home-ownership rates and improving the quality of life for Saudi citizens, supported by the guidance of the Saudi leadership.

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