In reference to Central Bank Circular No. 391000000353 dated 01/01/1439 AH regarding variable cost mortgage financing products for individuals. In light of the inquiries received by the Central Bank on this matter, the Central Bank emphasizes that mortgage lenders must do the following:

      1. Disclose the reference index for the variable cost of mortgage financing products on their website.

      2. Urgently communicate with all clients benefiting from variable cost mortgage financing products regarding the following points:

        A. The possibility of obtaining the reference index data for the variable cost of mortgage financing products on the lender’s website, along with a link dedicated to this information.

        B. Provide clients with contact information, allowing them at least one month from the date of notification to consider options for amending their contracts or any other options specified in the aforementioned circular.

        C. Inform them of their right to consult a credit advisor who is sufficiently knowledgeable about the characteristics of this type of product to provide a clear explanation of the nature of the product, its advantages and risks, relevant contract details and clauses, the repricing mechanism, and to answer client inquiries in this regard, with a requirement to document this communication and the outcomes reached.

Please note that the Central Bank will take all necessary legal actions in the event of non-compliance with the issued instructions in this regard.