Real Estate Development Fund Launches 'Alternative Financing' Program to Support Home Ownership

The Real Estate Development Fund today announced the launch of its innovative 'Alternative Financing' program. This financing approach aims to enhance the housing finance ecosystem in the Kingdom of Saudi Arabia by increasing banks' lending capacity, thereby helping more families own their first homes.

The 'Alternative Financing' program enables the Real Estate Development Fund to provide additional financing to participating banks, increasing their capacity to issue mortgage loans. The program strengthens the housing support system offered by the Fund by providing greater liquidity within the banking sector and expanding opportunities for sustainable home ownership.

The first phase of the program was launched through a strategic collaboration with the National Commercial Bank (SNB) and the National Housing Company (NHC). The Real Estate Development Fund provides the necessary financing for mortgage loan issuance by SNB, while NHC offers selected units to Saudi citizens wishing to own their first homes.

Eligible customers can purchase homes in selected projects by NHC in Riyadh, Jeddah, and Dammam, with monthly installments starting from only SAR 699. Customers benefit from instant financing approval, providing a seamless experience from application submission to obtaining financing approval to purchase the new home.

The CEO of the Real Estate Development Fund, Eng. Loi bin Mohammed Al-Nahid, said, 'The Alternative Financing program provides additional financing that increases banks' lending capacity, enabling more first-time homebuyers to obtain housing finance and contributing to building a stronger, more resilient housing finance ecosystem in the Kingdom.'

He added: 'Our collaboration with SNB and NHC combines financing, housing supply, and government support into a unified customer journey, a practical example of how strategic partnerships facilitate, accelerate, and enable home ownership for Saudi families.'

As the 'Alternative Financing' model expands to include additional banking partners, the Real Estate Development Fund expects the program to increase lending capacity across the sector, provide greater liquidity within the financial system, and support higher levels of mortgage issuance.

This launch represents the implementation of the Fund's 'Alternative Financing' model. As additional banks join the program, the Fund expects the model to expand mortgage lending capacity across various regions of the Kingdom, strengthen Saudi Arabia's housing finance ecosystem, and accelerate progress towards achieving the Kingdom's Vision 2030 target of raising home ownership to 70%.