Housing loan calculator (Oman)
Updated
Example (our example price, not a rule): a OMR 120,000 home with the minimum 10% down leaves a housing loan of OMR 108,000. Over CBO's longest term of 25 years at CBO's 6% ceiling it costs OMR 695.846 a month and OMR 100,753.654 in interest over the term; with the largest processing fee CBO allows (OMR 50) the real yearly rate is 6.00%. If a variable rate rose by 1 point (our example), the instalment would be OMR 763.322; if it fell by 1, OMR 631.357. A salaried borrower with a net salary up to OMR 3,500 may spend at most 60% of it on all monthly payments.
- Housing loan
- OMR 108,000.000
- Total interest (or profit)
- OMR 100,753.654
- Your down payment
- OMR 12,000.000 (10%)
- Processing fee
- OMR 50.000
If the rate changes
See every cost on the day, itemised →
Instalments on this page follow the standard monthly formula on the reducing balance. Your bank counts interest or profit day by day between the actual payment dates and rounds each amount, so its own schedule can differ slightly. Only your signed offer is binding.
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
Year by year (at an unchanged rate)
| Year | Paid | Interest | Principal | Balance at end |
|---|
CBO's housing-loan rules
- Loan-to-value: at most 90% of the property value, so at least 10% down. Land you own and a government housing subsidy count as the down payment; registration and insurance costs may be included in the value. CBO's circular sets no maximum loan amount.
- Term: at most 25 years, or until the borrower is 70 if earlier (counting the expected net pension).
- Rate: at most 6% a year for housing loans — a fixed ceiling that CBO says may change from time to time. It must be the effective rate on the reducing balance: no flat rates, no low teaser rate that rises later. A change in a variable rate must be notified 2 months before it takes effect. Late interest is at most 1% a year on the overdue amount.
- Debt burden: with a housing loan, all monthly payments may be at most 60% of a net monthly salary up to OMR 3,500, and up to 75% above it after a detailed credit review (only a ceiling); the personal-loan part inside stays at most 50%. Pensioners: 40% of a net pension up to OMR 3,500 (personal-loan part at most 30%), up to 75% above it (personal-loan part at most 40%). Every debt counts — cards, overdrafts, finance and leasing companies.
- Fees: a processing fee of at most OMR 50 on a housing loan; none for pensioners with a net pension under OMR 1,000. An early-settlement charge is at most 1% of the amount prepaid. The administrative fee for credit-life insurance or takaful is at most 0.05% of the loan, within the minimum and maximum in the rules box.
CBO's circular makes no distinction between Omanis and expatriates.
Islamic home finance
The same CBO circular covers Islamic banking entities: it speaks of "interest/profit", so the 6% ceiling, the 90% loan-to-value limit, the term, the fee caps and the debt-burden limits apply to Islamic home finance too, and the 1% ceiling covers Islamic default penalties. Enter the profit rate in the rate field.
Income tax from 2028
Oman's personal income tax starts on 1 January 2028: 5% on the part of a resident's total yearly income above OMR 42,000. From then, interest (or Islamic financing cost) on a loan to build or buy your main home is deductible once in a lifetime, under rules still to be set in the executive regulations. More in our guide Oman income tax 2028.
Who may buy property in Oman
- Omani citizens buy and register with the Ministry of Housing and Urban Planning.
- Citizens of the other GCC states may buy, but not agricultural land and not in the areas listed for strategic or security reasons — the Ministry's service page names them (see the rules box).
- Foreign nationals may buy land only within Integrated Tourism Complexes (ITCs).
- Non-Omani buyers pay an extra OMR 25 property-ownership application form when the sale is registered. Check with the Ministry of Housing and Urban Planning before you pay a deposit.
What EMI means and how it is calculated: EMI calculator — the formula, a worked example, and interest on savings.
Questions people ask
How much can a bank lend for a home in Oman?
At most 90% of the property value, so you need at least 10% down. CBO's circular sets no maximum amount; your debt burden limits the loan.
What is the longest housing loan term in Oman?
In Oman, 25 years, or until you are 70 if that comes earlier.
What is the maximum interest rate on a housing loan in Oman?
CBO's ceiling is 6% a year, as an effective rate on the reducing balance. CBO says the ceiling may change from time to time, and a change in a variable rate must be notified 2 months ahead.
How much of my salary can go to a housing loan in Oman?
In Oman, with a housing loan, all monthly payments at most 60% of a net monthly salary up to OMR 3,500, and up to 75% above it after a detailed credit review. Pensioners: 40% of a net pension up to OMR 3,500, up to 75% above.
What fees can a bank charge on a housing loan in Oman?
In Oman, a processing fee of at most OMR 50; none for pensioners with a net pension under OMR 1,000. An early-settlement charge is at most 1% of the amount prepaid.
Do the same limits apply to Islamic home finance?
Yes — CBO's circular covers Islamic banking entities and speaks of interest/profit, so the ceiling, loan-to-value, term, fee and debt-burden limits are the same.