Wednesday 11, January 2017 by Isla MacFarlane

Saudi Arabia raises LTV cap for real estate finance

The Saudi Arabian Monetary Authority (SAMA) is raising the maximum loan-to-value ratio for home financing from 70 per cent to 85 per cent.

After more than two years of implementing finance laws SAMA, has decided to raise the maximum loan-to-value ratio for home financing, set forth in Article 12 of the Implementing Regulation of Real Estate Finance Law, from 70 per cent to 85 per cent for first time buyers. 

SAMA's Governor, Dr. Ahmed A. AlKholifey, said that the move will support growth in the real estate finance sector; complement the national housing objectives included in the Kingdom's Vision 2030 without jeopardising the soundness of the banking sector and financial stability; and allow banks to provide various products that serve citizens and meet the market's needs.

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