Mortgage Reform Intelligence
Saudi Arabia’s mortgage market has undergone a structural transformation since Vision 2030’s launch, expanding from approximately SAR 200 billion in 2018 to SAR 951.3 billion in outstanding real estate loans by the end of 2025 — a 7.7 percent rise during the year. Real estate lending now accounts for nearly 30 percent of total bank credit, and the market is targeting SAR 1.3 trillion by 2030.
The Saudi Central Bank (SAMA) has been a primary driver of this expansion through progressive regulatory reform and accommodative monetary policy. SAMA implemented six consecutive interest rate cuts between August 2024 and December 2025, reducing the repo rate from 5.50 percent to 4.25 percent — the lowest level in over three years. These adjustments mirror US Federal Reserve movements due to the SAR-USD peg. Despite lower rates, new residential mortgage originations declined 11 percent year-on-year in 2025 to 108,795 contracts valued at SAR 80.42 billion, reflecting market recalibration after rapid growth in prior years.
The Saudi Real Estate Refinance Company (SRC), established by PIF in 2017, has emerged as a critical secondary market institution. SRC completed Saudi Arabia’s first RMBS transaction in August 2025, launched a SAR 20 billion local sukuk programme, and issued the first tranche of a USD 5 billion international sukuk programme on the London Stock Exchange, oversubscribed six times. SRC holds credit ratings of Fitch A+, S&P A, and Moody’s A2 and targets SAR 75 billion in mortgage refinancing within five years.
Our mortgage coverage includes SAMA rate policy analysis, SRC and RMBS market development, loan-to-value and debt-to-income regulations, and mortgage market outlook. See also Sakani Program, Homeownership, and our Mortgage Market Dashboard.
LTV and DTI Regulations: SAMA's Prudential Framework for Housing Finance
Analysis of SAMA's loan-to-value ratio (90% standard, 95% REDF), debt-to-income limits (55% standard, 65% programme beneficiaries), and their impact on mortgage accessibility.
SAMA Interest Rate Policy: Six Consecutive Cuts and the Impact on Saudi Housing Finance
Analysis of SAMA's monetary policy trajectory — from 5.50% to 4.25% repo rate across six cuts since August 2024, SAR-USD peg dynamics, and implications for mortgage affordability.
Saudi Mortgage Market Outlook 2026: Rate Cuts, Supply Growth, and Demand Recovery
Forward-looking assessment of Saudi Arabia's mortgage market — Jadwa Investment expectations, rate trajectory, housing supply impact, residential price index trends, and origination volume outlook.
SRC and RMBS Market Development: Building Saudi Arabia's Secondary Mortgage Market
Analysis of the Saudi Real Estate Refinance Company — first RMBS transaction, SAR 20B local sukuk, USD 5B international programme, SAR 75B refinancing target, and capital market implications.