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 regard, SAMA emphasizes that real estate financiers must undertake the following:

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

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

        A. The ability to access the reference index data for the variable cost of real estate finance products on the financier’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 has sufficient knowledge of 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 regulatory measures in the event of non-compliance with the issued instructions in this regard.