Borrower

SRC does not provide financing solutions directly to potential homeowners. SRC provides funds to banks and finance companies so they can offer attractive mortgage loans. By enabling lenders, SRC improves mortgage accessibility and affordability and helps Saudis own a home.

Partners

Lender

Banks and finance companies provide mortgages using their own funds. By purchasing their loan portfolios or providing additional funding, SRC ensures they can offer attractive mortgage financing.  This, in turn, increases the availability and affordability of mortgages.

Partners

SRC

SRC has a dual function.  First, it ensures that there is accessible and affordable mortgage financing available for Saudi banks and finance companies.  Second, SRC makes this possible through aggregating loan portfolios and packaging them into Mortgage Backed Securities (‘MBS’). SRC aligns the liquidity, capital and risk management requirements of mortgage providers with the risk acceptability and return on equity to meet investor targets.

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Investors

To fund its work, SRC packages home loans made by banks and finance companies into Mortgage Backed Securities (‘MBS’). Made up of short/long-term Sukuks or commercial paper, MBS are marketed to investors who provide SRC with new funding which is then used to purchase additional loan portfolios and provide funding to Saudi banks and finance companies.

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Frequently Asked Questions

    • What does SRC do?
      • SRC provides funding to lenders (banks and finance companies) to enable them to offer more accessible housing finance solutions to the primary customer, the homebuyer. SRC offers lenders accessible funding in the form of short or long-term loans or portfolio acquisitions, to provide the necessary liquidity and capital to facilitate market growth. SRC then aggregates and packages portfolios of loans into Mortgage Backed Securities (‘MBS’) to sell to investors. This process is known as the secondary market.
      • SRC aims to unlock the Saudi housing market by enabling lenders to offer more accessible home buying solutions.
    • When was SRC established and with what objective?
      • SRC was effectively formed in 2017 to create a secondary home loan market in Saudi Arabia by providing funding liquidity to lenders to enable them to offer more accessible housing finance solutions to homebuyers, thereby unlocking the Saudi housing market.
      • Ultimately, we want to enable the government to successfully deliver its housing objectives defined within the National Transformation Program 2020 and Vision 2030 by helping more Saudi families obtain their own homes.
    • What is a secondary home loan market and how does it work?
      • The secondary home loan market is where home loans and servicing rights are bought and sold between lenders and investors.
      • When a home buyer obtains a home loan, that loan is underwritten, funded and serviced by a bank or lending institution. Since the bank has used its own funds to make the loan, it will eventually require further funding to continue providing loans to new consumers. Therefore, the bank will sell the loan or portfolio of loans to the secondary market to replenish its cash reserves which are then available ensure the continuity of lending ability.
    • How would SRC act as an intermediary between investors and lenders?

      SRC acts an aggregator and packages similar home loans into Mortgage Backed Securities (‘MBS’). These MBSs are then sold to investors in the form of financial instruments such as commercial papers or short/long-term Sukuks.

    • How does SRC differ from a provider of home loans?

      SRC offers funding to lenders/originators (banks and finance companies) to enable them to offer accessible home loans for homebuyers. SRC does not offer home loans direct to homebuyers.

    • I want to buy a house, how can SRC help me?
      • SRC does not provide financing solutions directly to the public. Our services enable lenders to offer more accessible housing finance to homebuyers.
      • SRC is committed to providing the necessary information to the public through its website and other channels to ensure homebuyers have an understanding of the market and can make an informed decision about the housing finance options available to them.
    • Is SRC a government agency?

      SRC is a private entity backed by the Public Investment Fund (PIF) and is not a government agency. However, SRC works closely with the Ministry of Finance and the Ministry of Housing to ensure alignment in terms of the government’s delivery of public policy with regards to housing.

    • Who regulates SRC?

      SRC is licenced by the Saudi Arabian Monetary Authority (SAMA), who are responsible for prudential regulation and supervision of Money Changing Companies, including those operating within the housing finance market.

    • Where can I get independent advice on the real estate finance market?
      • While SRC cannot provide any advice to home buyers directly, it is committed to raising awareness of the mortgage market and options available for homebuyers.
      • Please visit the Insight section of our website for more information.
    • Which companies offer home loans directly to homebuyers?

      Homebuyers can obtain home loans from originators such as finance companies and banks. The principal lenders licenced to operate in real estate financing by the Saudi Arabian Monetary Agency (SAMA). Click here to see list

    • What home loan products are available to me?

      Details of home loans can be found on principal lenders licenced to operate in real estate financing by the Saudi Arabian Monetary Agency (SAMA). Click here to see list

    • Are all home loan products sharia compliant?

      Details of home loan products that are compliant with Sharia law can be found on principal lenders licenced to operate in real estate financing by the Saudi Arabian Monetary Agency (SAMA). Click here to see list

    • Who are the management team and what experience do they have in the home loan market?
      • SRC has a world-class management team with significant experience of working with companies operating in the secondary mortgage sector, both in developed markets as well as emerging markets such as KSA.
      • Visit our management page.
    • Where is SRC Located?

      Nakheel Area, ITCC Complex, Building WH14, 2nd Floor, Riyadh, Saudi Arabia.

    • Who are SRC’s partners and how can I reach them?
    • My question does not appear in this document, how do I get help?

      Send us an email: [email protected]

    • How can I apply for a job at SRC?