Question 1

What down payment is required for a mortgage in Saudi Arabia?

Accepted Answer

SAMA sets minimum down payments: 10% for your first home and 30% for a second or investment property. Some banks offer lower down payments through the Sakani (REDF) program. The Loan-to-Value (LTV) ratio reaches up to 90% for first homes and 70% for second properties.

Question 2

What's the difference between Murabaha and Ijara mortgages?

Accepted Answer

Murabaha: the bank buys the property and sells it to you at a disclosed profit — ownership transfers to you immediately. Ijara Muntahia Bittamleek: the bank buys the property and leases it to you until full payment, then ownership transfers. Murabaha is more common in Saudi Arabia, while Ijara may suit those wanting more payment flexibility.

Question 3

What is the Sakani (REDF) housing program and how does it help?

Accepted Answer

Sakani is a government program by the Real Estate Development Fund (REDF) that supports first-home ownership for Saudi citizens. It offers profit subsidies on mortgages up to 100% based on income, with a supported financing cap. You can apply through the Sakani platform (sakani.sa), qualify for the subsidy, then choose a bank on Bankkie for the best offer.

Question 4

What is the maximum mortgage term?

Accepted Answer

Mortgage terms extend up to 25–30 years depending on the bank and property type. Longer terms mean lower monthly payments but higher total cost. Some banks set a maximum borrower age at maturity (typically 60–70 years).

Question 5

What is the DBR limit for mortgages?

Accepted Answer

SAMA applies the 65% DBR rule to mortgages: your total monthly installments (mortgage + personal loans + auto finance + cards) must not exceed 65% of your salary. This determines your maximum mortgage amount based on existing commitments.

Question 6

Can I finance an off-plan (under-construction) property?

Accepted Answer

Yes, several Saudi banks offer financing for off-plan properties registered with Wafi (the regulatory authority). Financing is disbursed in stages based on construction progress, and the down payment may be lower. Verify the project is registered on the Wafi platform before applying.

Question 7

What are the admin fees and additional costs?

Accepted Answer

Additional costs include: admin fees (typically 1% capped at SAR 5,750 including VAT), property valuation fees, Takaful life and property insurance, and ownership transfer fees. All fees are included in the APR calculation that SAMA requires banks to disclose.

Question 8

Can I refinance my existing mortgage?

Accepted Answer

Yes, mortgage refinancing is available and can lower your monthly payment if profit rates have decreased. You'll need a new property valuation and SIMAH check. Compare refinancing offers on Bankkie — some banks offer special transfer deals that cover early settlement fees.

Question 9

What's the difference between fixed and variable profit rates?

Accepted Answer

A fixed rate stays constant throughout the financing term, giving you a predictable monthly payment. A variable rate is linked to SAIBOR and may rise or fall. Most Saudi banks offer a fixed rate for the initial years, then switch to a variable rate.

Question 10

Can non-Saudis buy property in Saudi Arabia?

Accepted Answer

Residents can obtain mortgage financing with specific conditions: valid Iqama, salary transfer, and higher minimum salary. Foreign property ownership is subject to area-specific regulations — Mecca and Medina have special rules. Some banks offer mortgages tailored for residents with different LTV ratios.