Real estate mortgage in Saudi Arabia: finance against your home
Updated
What is a real estate mortgage in Saudi Arabia?
A real estate mortgage (رهن عقاري) means your property stays in your name but is pledged to the financier as security: if the finance is not repaid, the property can be sold under the Enforcement Law. SAMA requires banks and finance companies to document it as a mortgage under the Registered Real Estate Mortgage Law (M/49) rather than take ownership of your property, and it is handled through the Ministry of Justice's Real Estate Exchange — releasing it after you have paid everything is free.
| Step | Who | Fee |
|---|---|---|
| Create the mortgage | Only the financier starts it; you, the owner, accept or reject it | No official fee page found |
| Move it to another financier | You ask; the current and the new financier approve | No Ministry fee |
| Release it after you have paid in full | The financier starts the release | Free (SAMA); no Ministry fee |
Official rule: A mortgage on property in Saudi Arabia is governed by the Registered Real Estate Mortgage Law (Royal Decree M/49 of 13/08/1433H). SAMA requires banks and finance companies to document a mortgage as a mortgage, and to stop transferring the property's ownership to themselves instead of mortgaging it. (source, checked 2026-10-19)
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.
Finance against a home you already own
SAMA's mortgage forms include one for a property the customer already owns: you pledge your home as security for the finance, and if it is not repaid the home is sold under the Enforcement Law. SAMA names no separate "equity release" product, and its rules do not say whether the home-finance fee cap (1% or SAR 5,000) or the loan-to-value limits apply to finance against a home you already own — ask the financier to state every fee in the contract before you sign.
The income limits apply to every finance you hold: with income of SAR 15,000 or less, all your monthly credit payments including home finance may not exceed 55% — at SAR 15,000 a month that is SAR 8,250 for everything together. See how much you can borrow.
Moving your home finance to another financier
Another financier may buy out your home finance, but the new finance must equal the amount in the debt-transfer form: SAMA does not allow extra cash to be paid out to you on top. The mortgage itself is moved on the Real Estate Exchange at your request, and the Ministry charges no fee for it. What paying off early costs is on the early settlement calculator.
Releasing the mortgage
Once you have paid everything, releasing the mortgage on your home is free. The financier starts the release on the Real Estate Exchange; the Ministry of Justice's release service has no fee. Keep the clearance letter.
A mortgage, not a transfer of ownership
Since 2017 SAMA has required banks and finance companies to register a real mortgage according to the actual contract, and to stop transferring the property into their own name instead of mortgaging it.
Questions people ask
How is a real estate mortgage released in Saudi Arabia?
After you have paid the finance in full, the financier starts the release on the Ministry of Justice's Real Estate Exchange. SAMA requires the release to be free, and the Ministry's release service has no fee.
Can I borrow against a home I already own in Saudi Arabia?
SAMA's forms allow a home you already own to be mortgaged as security for finance, and the income limits apply as for any finance. SAMA names no separate equity-release product and does not say which fee cap or loan-to-value limit applies — whether you get such finance is the financier's decision.
Can a new financier pay me extra cash when it buys out my home finance?
No — SAMA requires the new finance to equal the amount in the debt-transfer form and bars paying an excess cash amount to the customer, which would raise the finance.