Transfer Mortgage Loans
| No: 391000086876 |
Translated Document
Effective from 2018-04-24 - Apr 23 2018
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With reference to SAMA's Circular No. 391000028242 dated 10/03/1439H regarding the transfer of the real estate financing debt, and noting that some mortgage financiers, when purchasing mortgage debt from another financier, provide the customer with an excess cash amount, resulting in an increase in the new financing amount.
In line with SAMA's commitment to protecting customers and ensuring that financing entities comply with relevant laws and regulations, the Central Bank emphasizes the following:
- Adherence to Article (11) of the Implementing Regulation of the Real Estate Finance Law, as well as subsequent SAMA circulars, which set the maximum credit limit for real estate financing contracts, under any form of financing, at 90% of the value of the first home for citizens.
- Compliance with the repayment standards outlined in Article 84 of the Implementing Regulation of the Finance Companies Control Law, which govern the process of accelerated repayment.
- Adherence to paragraph (2) of the above-referenced circular, which states: "Grant credit equivalent to (100%) of the value of the offer specified in the form".
- Compliance with purchasing mortgage debt at a value equivalent only to the purchase offer.
For your information and action accordingly. SAMA will take all regulatory actions against mortgage financiers who fail to adhere to the provisions of this circular.