The changes in mortgage law will certainly provide a greater impetus for people to apply for home ownership, according to a home finance expert. 
Reducing the down payment amounts on housing applications from 30 percent to 15 percent, and in effect increasing the financing limit to 85 percent of the total mortgage value is a step in the right direction, says Mazin Al-Ghunaim, CEO of Bidaya Home Finance.
“We’d like to urge the people of Saudi Arabia to view home ownership as a long-term, sustainable, and integral investment — both for their personal and national economic health,” Al-Ghunaim told Arab News in an interview.

The following are excerpts from the interview:
Q: Bidaya Home Finance commenced its Saudi operations in early January with its avowed objective of raising levels of home ownership, what is the progress so far?
A: We have started to make an impression in people’s minds to view home ownership as a certain possibility. Home financing and ownership have often been viewed as a tedious process and struggled to remain a top priority for people in the Kingdom. 
With Bidaya Home Finance, people have started identifying a process that is dedicated toward a goal, swift, and easy to keep up with. 
Our dedicated website — bidaya.com.sa, which also acts as a one-stop application hub — has witnessed a surge of visits and applications since our official launch in January this year.
Q: What is Bidaya’s long-term strategy in enabling and empowering aspiring Saudi homeowners?
A: One of our main goals is to help aspiring customers and the general public to view home ownership as a long-term, sustainable project. 
The housing sector is the backbone of any economy, and with the Kingdom geared toward Saudi Vision 2030, of which housing and real estate are important elements, helping people enter the folds of owning a home will become ever more important. 
For our efforts to succeed, we will be banking heavily on crucial partnerships.
By deploying the power of digital media, informed customer service, and democratization of information, we are making the application process far simpler and transparent. 
The website, for instance, becomes the primary source of information on a customer’s eligibility for home finance. 
After entering a series of key indicators — such as one’s salary, the preferred timeline for repayment of mortgage, preference of the type of home and so on — the customer is informed of the amount he or she is eligible for finance through an algorithm-driven calculator. 
They can then upload the necessary documents and complete the financing process, with a customer service agent always available for help. 
Thus, the website completes the loop of financing cycle with transparency, accuracy, and convenience– something that was inconceivable so far. 
Q: What home finance solutions Bidaya offers to new homebuyers?
A: Our finance solutions are geared toward enabling home ownership for all. 
Our recent offer entitles first time home owners to avail an offer of acquiring home finance at a special rate of 2.99 percent — one of the lowest in the kingdom.
Q: How does Bidaya forge alliances with real estate developers and service providers?
A: We’ve always maintained that increasing home ownership is a collective endeavor. 
By partnering with the right entities, our efforts will further be amplified to reach the right audience and encourage them to save for owing a home. 
Just within a few years of our official launch, we have struck some crucial strategic alliances with important businesses in the region. 
Our most important ones are partnerships with Saudi Arabian Monetary Agency (SAMA) and SIMAH — the country’s credit bureau. 
We have also signed MoUs with Ijmal, a developer; Qarar, a risk adviser; and Zain telecom company.

SOLUTION
Q: How could Saudi Arabia find a solution to the existing housing shortage?
A: The government is taking strong steps toward bridging the housing gap. 
The call to diversify the economy, with special focus on the nonoil sector, puts the spotlight on the real estate and housing market. 
Close to the end of 2015, Saudi Arabia approved a 2.5 percent white land tax for undeveloped residential and residential/commercial plots within urban boundaries. 
This will not only spur construction activity to deliver more houses, but the proceeds of the tax are also planned to be used by SAMA for funding housing and related infrastructure projects in the Kingdom. 
In March this year, SAMA announced the reduction of down payment amounts on housing applications from 30 percent to 15 percent. 
Raising the financing limit up to 85 percent provides immense opportunity for aspiring customers to re-evaluate their approach, and allows us to enable applicants by providing a stronger and more comprehensive financing strategy.
Q: How does Bidaya propose to provide affordable housing across the Kingdom?
A: Our financing is among the most competitive ones such as our latest 2.99 percent and provides further incentive to choose Bidaya Home Finance. 
In addition, we have a robust digital presence, which allows customers to evaluate the prospects of owning a home depending on their salary, ability to repay the mortgage, preference of the house, and its total price. 
The website deploys a sophisticated algorithm that calculates all these important elements to provide the optimal finance amount available to the customer. 
Q: Do you think creation of economic cities will trigger more housing demand in Saudi Arabia?
A: Economic cities represent a renewed and long-term commitment to the country and its economy. 
When viewed as one of its kind real estate project in the region, they will spur construction activities in the housing sector, especially since nonoil growth is the need of the hour and in view of Saudi Vision 2030. 
Stable residential complexes, with a special focus on sustainable designs, affordability, and easy access to the urban hot-spots, will certainly help boost new homes. 
Q: What roles banks can play in providing effective mortgage finance?
A: Collectively, financial institutions play a fundamental role in providing mortgage finance that is reliable and transparent, and reflects the true nature of an applicant’s financial context. 
We are committed to cooperating with the financial institutions, and ensuring that the services in this sector are geared toward ensuring customer satisfaction, and real value is generated through completion of the home ownership cycle.
Q: How will the middle-income homebuyers benefit from available financing plans?
A: We believe in home ownership for all, and want to empower people across the spectrum of income and purchasing power in their journey toward home ownership. 
For middle income home buyers, and specifically first time buyers, our latest offer of 2.99 percent should provide reassurance and bring their dreams closer to reality. 
Since our website hosts an algorithm-powered calculator where an applicant enters the relevant details, this gives people of all income levels a tailor-made option that suits their requirements. 
Q: Do you think the Saudi mortgage law approval has changed the landscape of the market?
A: The changes in mortgage law will certainly provide a greater impetus for people to apply for home ownership. Reducing the down payment amounts on housing applications from 30 percent to 15 percent, and in effect increasing the financing limit to 85 percent of the total mortgage value is a step in the right direction. 
While these changes are made, what will still be instrumental is the ease of access to formal home financing.

ADVICE TO SAUDIS
Q: What advice do you have for Saudis to go for home ownership?
A: We’d like to urge the people of Saudi Arabia to view home ownership as a long-term, sustainable, and integral investment — both for their personal and the national economic health. 
We would also highlight the importance of matching your home aspirations with your immediate and near future financial assessments, in order to ensure that the financing endeavor is realistic, and sustainable. 
It is also equally important to match the aspiration of home ownership, and the choice of the type of residential unit should match with one’s current lifestyle and family requirements. 
Owning a home has traditionally been important, and it remains important for the future too — for one’s financial portfolio, one’s family, and one’s legacy.

Source: Arab News