Flip through the latest issue of Gulf Weekly.
Bahrain-based Sakana Holistic Housing Solutions, an Islamic mortgage finance provider, has announced a reduction in its retail mortgage base rate by 0.25 per cent (25 basis points), taking its new benchmark retail financing rate to 9.25 per cent on a reducing balance basis.
This is the second rate reduction in the last four months totalling to 0.50 per cent (50 basis points).
Sakana CEO R Lakshmanan, abive, said: "We are seeing some signs of stability in the global markets and we believe that this may have positive impact on our funding costs going forward. Furthermore, Sakana has recently completed three years of successful commercial operations and again this may have a positive impact on our ability to raise funds.
"This rate reduction is part and parcel of Sakana's commitment to customers to provide best value and expect this reduction will reduce strain on their financial burden. With the market moving from off-plan to completed property and as many projects are gearing up for completion, supply of homes is expected to increase in the next couple of years.
"Further, the government has also announced several initiatives to provide housing to citizens. As a result the long-term outlook for mortgage finance is stable."
Sakana was recently awarded the 'Best Islamic Mortgage Provider in the Middle East' in the International Real Estate Finance Summit - IREF ME 2009 organised by ICG Events. Sakana has won this award for the second year in a row.
