Further to SAMA Circular No. 391000000353 dated 01/01/1439H regarding variable cost Real Estate finance products for individuals. In light of the inquiries received by SAMA on this matter, SAMA emphasizes that real estate lenders must undertake the following:

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

      2. Urgently communicate with all customers benefiting from variable-cost real estate financing products regarding the following points:

        A. The ability to access the reference index data for the variable cost of real estate financing products on the lender’s website and provide the dedicated link for this information.

        B. Provide customers with contact details and grant them a period of no less than one month from the date of receipt to offer them options to amend their contract terms or any other options as outlined in the aforementioned circular.

        C. Inform customers of their right to communicate with a credit advisor who is well-versed in the characteristics of this type of product to provide a clear explanation of the product’s nature, its benefits and risks, the relevant contract terms, the repricing mechanism, and to answer any customer inquiries in this regard. This communication and the outcomes must be properly documented.

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