New Financing Program Launched for First-Time Homebuyers

The Real Estate Development Fund (REDF) has launched a new Alternative Financing program in 2026 aimed at reviving the residential mortgage market and expanding home financing for first-time Saudi buyers in Riyadh, Jeddah, and Dammam. The move follows a sharp decline in the value of new residential mortgages, which fell from about SAR 9.96 billion in May 2025 to roughly SAR 4.4 billion in May 2026.

Under the program, REDF provides additional wholesale financing to the Saudi National Bank (SNB) so it can issue more residential mortgages to individuals, while the National Housing Company (NHC) supplies selected housing units for eligible first-time buyers. The initiative offers instant financing approval for qualifying customers, with monthly installments starting from SAR 699 on selected units.

What it means for first-time buyers

The program works alongside existing subsidized mortgage frameworks that remain in force in 2026. First-home buyers can benefit from a reduced cash down payment of 5% instead of 10% for properties valued up to SAR 800,000, with financing covering up to 95% of the property value. An REDF guarantee covers the extra 5%, limiting the buyer's own cash requirement.

Subsidy parameters through Sakani continue to support eligible buyers, including profit-rate coverage on up to SAR 500,000 of the mortgage for up to 20 years, with any amount above that financed at standard commercial rates. Households whose monthly income does not exceed SAR 14,000 receive 100% REDF profit coverage on the first SAR 500,000 financed, while households with liquid assets above SAR 5 million are not eligible for subsidized loans.

The launch supports the housing goals of Saudi Vision 2030 by boosting banks' lending capacity and liquidity and widening access to affordable home ownership across the Kingdom's main cities.

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