SRC, Damanat sign MoU to guarantee residential mortgage portfolios

Saudi Real Estate Refinance Co. (SRC) signed, on October 6, a Memorandum of Understanding (MoU) with the Saudi Mortgage Guarantees Services Co. (Damanat), which aims to guarantee the residential mortgage portfolios owned by SRC and the portfolios being acquired.

The MoU also aims to help reduce financing costs for target segments and increase the number of beneficiaries, the company added, in a statement.

The partnership is a fundamental pillar for expanding financing coverage to achieve a more inclusive real estate financing market in terms of beneficiaries, it further stated.

Moreover, the MoU contributes to raising the attractiveness of the real estate finance market by developing the secondary market for real estate financing aimed at supporting its growth and stability, and attracting more local and international investors by enhancing the creditworthiness of the real estate financing portfolios owned by SRC, as the company is currently working with its partners to continue developing a secondary market that supports the real estate finance sector in the Kingdom.