Saudi Mortgage Lending Surges 6% to SAR 967.9B, Consumer Loans Stagnate

Mortgage lending by Saudi commercial banks rose 6% year-on-year to SAR 967.9 billion in the first quarter of 2026, the Saudi Central Bank (SAMA) reported. Consumer loans inched up just 0.3% over the same period, reaching SAR 481.1 billion.

The divergence between the two categories widened. Mortgages now account for roughly 67% of total bank credit to individuals and corporates, up from 65% a year earlier. Consumer loans, by contrast, have barely budged.

The mortgage growth supports the housing market, a key pillar of Saudi Vision 2030. Government programs such as Sakani have pushed homeownership rates higher, and banks have responded with increased lending. The first-quarter figures suggest that momentum carried into early 2026.

For banks, the shift toward secured lending reduces credit risk. Mortgages typically carry lower default rates than unsecured consumer loans. They also generate lower yields. The net effect on bank profitability depends on volume growth and the spread between lending rates and funding costs. SAMA has kept its repo rate at 5.5% since mid-2025, which has helped keep mortgage rates relatively stable.