Home Loan Calculator (KSA)
Calculate your monthly mortgage payment in Saudi Arabia. Sharia-compliant financing with Murabaha, Ijara, and Musharaka options. SAMA-compliant DTI check included.
🏠 Home Loan Calculator (KSA)
Financing Summary
Step‑by‑Step
Home Financing in Saudi Arabia
Saudi Arabia's real estate financing market is one of the fastest-growing in the Middle East, driven by Vision 2030's ambitious goal to increase homeownership from 47% to 70% by 2030. All home financing in the Kingdom is governed by the Saudi Central Bank (SAMA) and must comply with Sharia law — meaning banks use profit-based structures instead of interest (riba).
As of Q1 2025, total real estate financing in Saudi Arabia reached approximately SAR 950 billion, with individuals accounting for 76% of all mortgage financing.
Sharia-Compliant Financing Products
| Product | How It Works | Rate Type | Ownership |
|---|---|---|---|
| Murabaha | Bank buys property, sells to you at cost + disclosed profit margin | Usually Fixed | Yours immediately |
| Ijara | Bank buys property, leases to you. Ownership at end of lease | Can be Variable | At lease end |
| Musharaka | Joint ownership — you gradually buy out bank's share | Variable | Gradual transfer |
Murabaha — Cost-Plus Financing
Murabaha (مرابحة) is the most popular home financing product in Saudi Arabia. The bank purchases the property you want and immediately sells it to you at a higher price that includes a pre-agreed profit margin. Key features:
- Property registered in your name from day one
- Fixed monthly payments for the entire tenure (predictable budgeting)
- Total cost agreed upfront — cannot change after signing
- No Sharia concerns about ownership ambiguity
Ijara — Lease-to-Own
Ijara (إجارة) is a lease-based structure where the bank retains ownership during the financing period. You pay monthly amounts that include both rent and a purchase component:
- Property remains in the bank's name during the lease
- Monthly payments may fluctuate if the rate is variable
- Ownership transfers at the end of the lease for a nominal amount
- Lower initial payments compared to Murabaha in some cases
Musharaka — Diminishing Partnership
Musharaka Mutanaqisa (مشاركة متناقصة) is a joint-ownership model where:
- Both you and the bank contribute funds to purchase the property
- You pay rent on the bank's share + buy out their ownership gradually
- Your ownership percentage increases with each payment
- Involves risk-sharing aligned with Islamic principles
SAMA Regulations
| Rule | Detail |
|---|---|
| DTI Limit | Monthly installments ≤ 65% of net salary |
| LTV — First Home | 90% max (10% minimum down payment) |
| LTV — Second Home | 70% max (30% minimum down payment) |
| Early Repayment | Penalty capped at 3 months' profit or remaining profit (lesser) |
| Minimum Age | 21 years (must not exceed 65-70 at end of tenure) |
| Min Salary (Transfer) | SAR 7,000/month (varies by bank) |
| Min Salary (Non-Transfer) | SAR 10,000/month (varies by bank) |
Down Payment Rules
| Scenario | Min Down Payment | Max LTV | Notes |
|---|---|---|---|
| First Home (Saudi) | 10% | 90% | Increased from 85% in 2018 by SAMA |
| Second Home | 30% | 70% | Investment property rules apply |
| Expat (Typical) | 20–30% | 70–80% | Depends on bank, Iqama status |
| Off-Plan Property | 10–20% | Varies | Developer-specific terms |
Monthly Payment Formula
Where:
M = Monthly payment
P = Financing amount (property price − down payment)
r = Monthly profit rate (annual rate ÷ 12 ÷ 100)
n = Total number of months (years × 12)
Worked Examples
Example 1: SAR 1,000,000 Property — First Home
| Detail | Value |
|---|---|
| Property Price | SAR 1,000,000 |
| Down Payment (10%) | SAR 100,000 |
| Financing Amount | SAR 900,000 |
| APR (Profit Rate) | 5.5% |
| Tenure | 25 years (300 months) |
| Monthly Payment | ≈ SAR 5,529 |
| Total Cost | SAR 1,658,700 |
| Total Profit Paid | SAR 758,700 |
| Min Salary (65% DTI) | SAR 8,506 |
Example 2: SAR 1,500,000 Villa — Saudi Employee, SAR 20,000 Salary
| Detail | Value |
|---|---|
| Property Price | SAR 1,500,000 |
| Down Payment (10%) | SAR 150,000 |
| Financing Amount | SAR 1,350,000 |
| APR | 5.5% |
| Tenure | 25 years |
| Monthly Payment | ≈ SAR 8,293 |
| DTI | 8,293 ÷ 20,000 = 41.5% ✅ OK |
Example 3: Impact of Tenure Length
Same property: SAR 1M, 10% down, 5.5% APR — different tenures:
| Tenure | Monthly Payment | Total Profit |
|---|---|---|
| 15 years | SAR 7,352 | SAR 423,360 |
| 20 years | SAR 6,198 | SAR 587,520 |
| 25 years | SAR 5,529 | SAR 758,700 |
| 30 years | SAR 5,112 | SAR 940,320 |
Longer tenure = lower monthly payment but significantly more total profit paid.
Vision 2030 & Housing Programs
| Program | What It Offers |
|---|---|
| Sakani | Personalized housing solutions — subsidized rates, land plots, ready homes |
| REDF | Real Estate Development Fund — profit-free loans and subsidies for first-timers |
| SRC | Saudi Real Estate Refinance Company — provides liquidity to enable long-term mortgages |
The Housing Program under Vision 2030 aims to raise homeownership from 47% (2016) to 70% by 2030. As of 2025, the rate has already exceeded 62%, supported by regulatory reforms and government subsidies.
Saudi Banks Offering Home Financing
| Bank | Indicative APR | Products | Max Tenure |
|---|---|---|---|
| Al Rajhi Bank | ~5.50% | Murabaha / Ijara | 30 years |
| Saudi National Bank | ~5.75% | Murabaha / Ijara | 25 years |
| Riyad Bank | ~5.60% | Murabaha / Ijara | 30 years |
| SAB (HSBC Saudi) | ~5.80% | Murabaha / Ijara | 25 years |
| Emirates NBD | ~7.22% | Murabaha | 20 years |
| Banque Saudi Fransi | ~5.90% | Murabaha / Ijara | 25 years |
| Arab National Bank | ~5.75% | Murabaha / Ijara | 25 years |
| Alinma Bank | ~5.65% | Murabaha / Musharaka | 30 years |
Required Documents
- National ID (Saudis) or Iqama (expatriates)
- Salary certificate from employer
- Bank statements (last 3-6 months)
- SIMAH credit report (credit bureau check)
- Property valuation report
- Employment contract
- Down payment proof
- Self-employed: Additional financial statements, CR (commercial registration)
How Other KSA Calculators Help
| Calculator | How It Helps with Home Buying |
|---|---|
| Salary Calculator | Calculate net salary for DTI assessment |
| GOSI Calculator | Banks verify employment via GOSI records |
| VAT Calculator | Calculate 15% VAT on property (if applicable) |
| EOSB Calculator | Plan EOSB savings toward down payment |