March 29, 2018
Masakin Home Finance Program is “Not for Retirees Only”
Program is Open to All Government-Sector Employees and All Retirees in the Kingdom – Including Private-Sector (GOSI) Retirees
One of the Few True Mortgage Products in the Industry to Have Property Deed in Customer’s Name, with No Salary Assignment
Riyadh, Kingdom of Saudi Arabia
Government employees and pensioners who aspire to home ownership in Saudi Arabia became one step closer to making their dreams a reality, thanks to the signing between the Real Estate Development Fund (REDF) and the Public Pension Agency (PPA) on the 26th of February.
The Masakin Program has now been expanded to encompass ALL retirees in the Kingdom, regardless of whether they spent their working lives in the public or private sector, and is also open to younger government-sector employees with many working years ahead of them.
A true mortgage, offering a deed in the customer’s name, the scheme is Shariah-compliant and unlike a bank mortgage, no salary transfer is required.
The PPA already works together with Dar Al Tamleek to deliver the ‘Masakin’ program of benefits. But now, with the additional support of REDF, in the form of its subsidized lending program and down payment guarantee program, the Dar Al Tamleek-administered Masakin offering will become the only ‘all government for government’ product in the Kingdom.
The new REDF-backed PPA Masakin product will deliver several benefits via its subsidized lending program and down payment guarantee program, to include:
-Without salary transfer
-Six-month grace period for finance periods of 10 years or more
-Deed in the client’s name
-Financing up to 30 years
-Financing up to age 70 years
Signing on behalf of the Masakin program, Yasser Abu Ateek, CEO of Dar Al Tamleek, said: “The signing between the PPA and the REDF is a milestone in the nation’s home finance market, but, more importantly, a milestone in the advancement of our society, one that is fair, honors hard work, and enables economic and social advancement. It is also in accordance with government efforts to increase home ownership among Saudi citizens.”
Under the terms of the new Dar Al Tamleek-administered Masakin program, the REDF will provide the beneficiaries with a monthly subsidy to cover the beneficiary’s cost of financing profits for up to SR 500,000.
The beneficiary may also receive a higher amount of funding if he desires and his financial ability is acceptable to cover the additional funding. The REDF may also extend a down payment guarantee offer for some eligible customers, in addition to the subsidized lending program.
The down payment guarantee program will minimize the required down payment to 5%, instead of the 10% down payment mandated by SAMA for the purchase of a first home. The maximum property value permitted under this program is SR 800,000.
The REDF has partnered with most Saudi banks and non-bank mortgage companies to offer its subsidized lending program, but the new Dar Al Tamleek-administered Masakin product is the only ‘all government for government’ offer currently available to government-sector employees and pensioners in the Kingdom.