Saudi Real Estate Refinance Company
Overview
The Saudi Real Estate Refinancing Company is wholly owned by the Saudi Public Investment Fund, and works to provide liquidity to financing service providers in the Kingdom, and facilitate access to sustainable financing solutions for those wishing to own their homes in the Kingdom.
The company enables individuals and entities aspiring to finance real estate, directly and indirectly, to increase and diversify long-term real estate financing with real estate financing products at a fixed cost (LTFR), while the company provides support to real estate financiers by providing liquidity and reducing the burden on capital.
The company then collects and packages the financing portfolios into securities backed by real estate financing for sale to local and international investors.
Services
While SRC does not offer home loans direct to home buyers, it does provide funding to lenders (banks and finance companies) to enable them to offer more accessible housing finance solutions. By offering lenders funding in the form of short or long-term loans or portfolio acquisitions, SRC provides the necessary liquidity and capital to facilitate the housing mortgage market’s development. After aggregating and packaging portfolios of loans into mortgage backed securities, SRC sells them to investors and reinvests the funds into future loans to lenders. This facilitates housing market growth and enables more Saudis to own their own homes.