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September 28, 2015
Saudi Mortgage Law: Anticipated Impact vs. Ground Realties
Until the issuance of the Mortgage Law (prior to 2012), the finance sector regulations in Saudi Arabia, in particular the home finance segment was underdeveloped. The lenders were hesitant to provide financing due to ambiguous regulations and challenges associated with enforcing their rights. These risks added to the costs of financing making it expensive for the borrowers. The traditional practice followed by the Saudi banks was to offer home buying loans primarily secured by banks’ automatic deduction of loan repayments...
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May 5, 2015
Saudi Arabia: Mortgages enter housing market
The landscape of Saudi Arabia’s real estate market is set to change with the ushering in of a slew of mortgage laws. However, things were challenging before the law, and the following data tells us exactly why. Suppose, you are 20-something and draw SAR 6500-7700 a month. In that case, for two reasons, you will not be able to afford a decent home. One, the down payment for the house is approximately 14 months of your salary. If you...