Media ININ Economy We Trust
Media In / Agencies / Riyadh 20 May 2018
Saudi Arabian Monetary Agency (SAMA) issued new mandatory instructions to banks, banks and mortgage companies operating in the Kingdom to provide mortgage finance to individuals.
The decision is based on the powers granted to it under the relevant laws, regulations and instructions. The decision is aimed at enabling customers to make the right decision when applying for mortgage finance and protecting the rights of real estate financing parties. Sama confirmed that these banks and companies should not enter into any real estate financing contract for individuals until such instructions are met and documented in the financing file.
According to the new instructions, SAMA has instructed real estate financiers (banks and finance companies) when a customer applies for a residential mortgage product to request and study information necessary to understand the client’s financial circumstances and to create a clear picture of the client’s ability to meet the obligations that will result from the required financing, Which is financed by the perception of the appropriateness of the product to the customer. The financier may not offer a mortgage offer if the results of the study of the customer’s ability to meet the obligations do not comply with the policies adopted by the financier for granting the credit, Saudi Arabian Monetary Agency.
The SAMA also stressed to the real estate financiers to explain to the client about the proposed mortgage finance product, in which he explains in particular the most important terms and conditions of the financing contract to be signed and clarifies the risks that accompany the product, provided that this explanation and discussion with the client and answer all his inquiries by a responsible officer And that the financier should provide the explanation, provided that the financier does not provide a real estate financing offer unless it is clear to him that the client understands the terms and conditions of the financing required and the obligations accompanying him.
