REDF, SRC, SNB sign MoU to develop secondary mortgage market

Logo of Real Estate Development Fund (REDF)

The Real Estate Development Fund (REDF), the Saudi Real Estate Refinance Co. (SRC), and the Saudi National Bank (SNB) signed a memorandum of understanding (MoU).

The move aims to enhance Saudi Arabia's housing sector and develop the secondary mortgage market, the Saudi Press Agency reported.

The agreement was signed under the patronage of Majid Al-Hogail, Minister of Municipal, Rural Affairs, and Housing.

This partnership also seeks to strengthen collaboration between SRC and SNB, with the bank regularly creating mortgage portfolios to be refinanced by SRC.

Further, the collaboration aims to provide liquidity in the market to ensure a continuous flow of mortgage financing and support SRC’s securitization activities. Accordingly, this will contribute to the development of the secondary mortgage market in the Kingdom.

On the sidelines of the signing ceremony, Al-Hogail launched SNB's financing offer, starting at 2.59% for those wishing to purchase residential units under construction.

Mansour bin Madi, CEO of REDF, said this strategic partnership with SRC and financial institutions aims to strengthen the mortgage market and reduce financing costs for Saudi families.

This will be achieved through diverse housing and financing options tailored to the needs of Sakani program beneficiaries, aligning with the goals of the Housing Program, a key initiative of Vision 2030, he noted.