Home finance rules in Saudi Arabia: how much, what it costs, how much of your income
Updated
What are the conditions for home finance in Saudi Arabia?
For a home loan (home finance) on a Saudi citizen's first home, a lender may finance up to 90%, so you put at least 10% down; for any other home at least 15% at a real estate finance company and 30% at a bank. All your credit payments together may take at most 55% of an income up to SAR 15,000 (65% with state housing support) and 65% up to SAR 25,000, and the admin fee is capped at 1% or SAR 5,000, whichever is lower.
| Item | Rule |
|---|---|
| Down payment, citizen's first home | at least 10% (finance up to 90%) |
| Down payment, any other home | at least 15% at a real estate finance company, 30% at a bank |
| Longest term | no official maximum found; supported (Sakani) finance at most 25 years, repaid by age 65 |
| All credit payments, income up to SAR 15,000 | at most 55% of income (65% with state housing support) |
| All credit payments, income SAR 15,000–25,000 | at most 65% of income |
| Income SAR 25,000 or more | the lender's own assessment |
| Admin fee | at most 1% of the finance or SAR 5,000, whichever is lower, + 15% VAT |
| Early repayment | may be barred for at most 2 years from signing; releasing the mortgage after full settlement is free |
Official rule: A Saudi citizen's first home may be financed up to 90% of its value. (source, checked 2026-10-09)
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.
Your own instalment: home finance calculator.
How much a Saudi lender may finance, what it may charge, how variable rates must be shown, when you may pay off early, and how much of your income all your finance may take — the SAMA rules for home finance in one place.
A Saudi citizen's first home: up to 90% financed. Any other home: up to 70% at a bank, 85% at a real estate finance company. Admin fee at most 1% or SAR 5,000, whichever is lower, plus VAT.
How much may be financed
- First home of a Saudi citizen: up to 90% of the value, so 10% down.
- Any other home — and every buyer who is not a citizen buying a first home: banks up to 70%, licensed real estate finance companies up to 85%.
What the lender may charge
The admin fee is capped at 1% of the finance or SAR 5,000, whichever is lower, plus VAT. The cap covers everything you must pay to get the finance — application study, valuation, inspection and registration; the lender deals with the third parties itself. Example: on SAR 1,350,000 the cap is SAR 5,000 + SAR 750 VAT.
Variable rates: three examples
A variable-rate contract must show three instalment examples: at the initial term cost, a higher one and a lower one. The rules set no size for the move — the home finance calculator lets you choose it.
Paying off early
A home finance contract may forbid early repayment for at most 2 years from signing, and it must state how early repayment is done and how compensation is calculated. Releasing the mortgage after full settlement is free. Work it out with the early settlement calculator.
How much of your income
- With home finance, all your credit payments together may take at most 55% of income up to SAR 15,000 a month (65% with Ministry of Housing / REDF support) and 65% between SAR 15,000 and 25,000.
- From SAR 25,000 a month the lender sets its own limit.
- All credit except home finance may not exceed 45% of income (below SAR 25,000).
Your maximum: how much can I borrow? · the cash on the day: costs of buying a home.
Questions people ask
What are the home finance rules in Saudi Arabia?
Up to 90% for a Saudi citizen's first home; for any other home up to 70% at a bank and 85% at a real estate finance company.
What may the lender charge?
In Saudi Arabia, an admin fee of at most 1% of the finance or SAR 5,000, whichever is lower, plus VAT — covering valuation, inspection and registration.
Can I pay off home finance early?
The contract may forbid it for at most 2 years from signing and must say how early repayment is charged, in Saudi Arabia. Releasing the mortgage afterwards is free.
How much of my income can go to finance?
In Saudi Arabia, with home finance, all credit payments together at most 55% of income up to SAR 15,000 (65% with support) and 65% up to SAR 25,000; above that the lender decides.
Can expats get a home loan in Saudi Arabia?
Yes, where a non-Saudi may own: inside the zones opened to non-Saudis, and a legally resident non-Saudi also one home for their own use outside them (not in Makkah or Madinah). A bank may then finance up to 70% and a real estate finance company up to 85%; the 90% limit is for a citizen's first home only.