Saudi Arabia’s Real Estate Development Fund has approved the launch of a mortgage guarantee programme for citizens on the kingdom’s housing waiting list.
The programme will help beneficiaries of the fund find real estate financing by nominating a relative as a guarantor for banks.
The fund’s board of directors also approved the transfer of outstanding loan applications under the guarantee of a first degree relative who meets lending conditions.
The system is expected to benefit civil, military and private sector employees and will officially come online once procedures are in place, according to Saudi Press Agency.
Last month, the central bank also announced the scrapping of administrative fees for mortgage holders if they switch between fixed and floating rate loans, as part of new measures to boost the housing market.
This followed the granting of permission to banks to supply a bigger share of funding for purchases of homes at the start of the year.
The kingdom is expected to handover 120,000 housing units in 2017 as part of its financial assistance programme.
The handovers come as part of a broader goal to increase the percentage of homeowners among Saudi citizens from 47 per cent today to 52 per cent by 2020.