Early settlement calculator (Saudi Arabia)
Updated
How does a debt buy-out work in Saudi Arabia?
In a debt buy-out (balance transfer) a new lender pays off your finance and you repay the new lender instead: your current lender must issue the outstanding-balance statement within 7 business days, may charge at most 3 months' term cost on the declining balance for settling early, and must give the clearance letter within 7 business days. On SAR 80,000 left over 36 months at an example 6% that early-settlement charge is at most SAR 1,169; a top-up (refinancing) is only allowed once 20% of the original amount is repaid.
| Step | Rule and cost |
|---|---|
| 1. Ask your current lender for the balance | statement within 7 business days; it may not refuse the transfer without a good reason |
| 2. The new lender pays off the old finance | SAR 80,000 balance + at most SAR 1,169 (3 months' term cost) + documented third-party costs |
| 3. Clearance letter | within 7 business days after full settlement |
| Top-up (refinancing more) | only after at least 20% of the original amount is repaid |
| Home finance | may be barred from early repayment for at most 2 years from signing |
Official rule: For a buy-out the current lender must issue the outstanding-balance statement within 7 business days, and may not unreasonably refuse the transfer. (source, checked 2026-10-09)
In Saudi Arabia paying off early costs at most the next 3 months' term cost, worked out on the declining balance — the rest of the profit falls away. Example: SAR 80,000 left over 36 months at a 6% term cost: the charge is at most SAR 1,169, you settle with SAR 81,169 and no longer pay SAR 6,446 in term cost.
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.
The SAMA rules for paying off early
- Settling in full: you pay the remaining balance plus at most the term cost for the next 3 months, worked out on the declining balance. All later term cost falls away.
- Third-party costs: the lender may also recover documented costs it paid to a third party for your contract and cannot get back.
- Part-payments: the lender must accept an early part-payment of one full instalment or a multiple of it.
- Home finance: the contract may forbid early repayment for at most 2 years from signing, and it must say how early repayment is charged. Releasing the mortgage afterwards is free.
- Moving to another lender: your lender must give you the balance statement within 7 business days, and the clearance letter within 7 business days after you settle.
- Topping up: finance can only be refinanced once at least 20% of the original amount is repaid.
- Car lease: buying a leased car out early also costs at most the next 3 months' term cost.
Finish earlier or pay less?
After a part-payment you can keep the instalment and finish earlier (more term cost saved) or keep the end date with a lower instalment (more room each month). The calculator shows both.
Questions people ask
How much does early settlement cost in Saudi Arabia?
In Saudi Arabia, at most the term cost for the next 3 months, worked out on the declining balance, plus documented third-party costs the lender cannot get back. All later term cost falls away.
Can I make a part-payment?
Yes — in Saudi Arabia, the lender must accept an early part-payment of one full instalment or a multiple of it.
Can my bank stop me paying off my home finance early?
A home finance contract may forbid early repayment for at most 2 years from signing, in Saudi Arabia.
How fast must the lender give me a settlement figure?
In Saudi Arabia, for a move to another lender, the balance statement must come within 7 business days; after you settle, the clearance letter within 7 business days.
How to calculate early settlement?
In Saudi Arabia, take what you still owe and add the term cost of the next 3 months worked out on the declining balance — that is the most a lender may charge — plus any documented third-party costs it cannot get back. Example: SAR 80,000 left over 36 months at 6%: at most SAR 1,169 on top, and you save about SAR 6,446 of term cost. The same 3-month rule applies to car finance; buying a leased car out early costs at most the term cost of the next three months.