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Calculate your monthly Islamic mortgage (Murabaha) payments for property in Saudi Arabia. Enter the property price, down payment, and profit rate to see your monthly installment, total cost, and affordability based on SAMA regulations.
Typical rates in Saudi Arabia: 4-7% for Islamic mortgage financing
This calculator estimates your monthly payment for Islamic home financing (Murabaha) in Saudi Arabia. It uses the standard amortization formula adapted for Islamic profit-rate structures. Here's exactly what it calculates:
Monthly Payment Formula:
M = P x [r(1+r)^n] / [(1+r)^n - 1]
Where:
M = Monthly payment (installment)
P = Financing amount (property price minus down payment)
r = Monthly profit rate (annual rate / 12)
n = Total number of months (years x 12)
A typical 3-bedroom apartment in Riyadh costs around 1,000,000 SAR. With a 20% down payment (200,000 SAR), financing 800,000 SAR at 5.5% over 25 years:
All mortgage products in Saudi Arabia must be Sharia-compliant - conventional interest-based mortgages don't exist here. If you're coming from the US, UK, or Europe, this is a fundamentally different system. Instead of lending you money and charging interest, Saudi banks use structures where they either buy the property and resell it to you at a markup, or lease it to you with an option to purchase. The three main types are:
The most common structure. The bank buys the property from the seller, then immediately sells it to you at an agreed markup (the "profit"). You pay this total price in monthly installments over 10-30 years. The profit rate is agreed upfront and doesn't change (for fixed-rate products). From a practical standpoint, your monthly payment looks and feels exactly like a conventional mortgage - you're just technically buying from the bank, not repaying a loan.
Our calculator uses this model. Most Saudi banks (Al Rajhi, SNB, Riyad Bank) offer Murabaha as their standard product.
The bank buys the property and leases it to you. You pay monthly rent (which includes the profit margin) and at the end of the lease term, ownership transfers to you. During the lease period, the bank technically owns the property. This structure is common for investment properties and sometimes preferred because the bank handles major structural repairs as the legal owner.
Monthly payments are similar to Murabaha but the legal structure and early termination rules differ. Available at Bank AlJazira, SABB, and others.
You and the bank jointly purchase the property as partners. You then gradually buy out the bank's share through monthly payments while also paying rent on the bank's portion. Over time, your ownership share increases until you own 100%. This is considered the most "purely Islamic" structure by scholars, but is less common in Saudi Arabia.
Available at some banks for high-value properties. The monthly payment differs slightly from Murabaha but the total cost is comparable.
All major Saudi banks offer home financing products. Rates vary based on your employment sector (government vs private), salary level, existing debts, and the property type. Here's an overview of the main providers:
| Bank | Typical Rate | Max Term | Expat Eligible | Notes |
|---|---|---|---|---|
| Al Rajhi Bank | 4.5-6.5% | 30 years | Yes | Largest Islamic bank, competitive rates for government employees |
| Saudi National Bank (SNB) | 4.3-6.0% | 30 years | Yes | Often lowest rates, strict eligibility requirements |
| Riyad Bank | 4.5-6.5% | 25 years | Yes | Good for private sector employees, flexible terms |
| SABB (HSBC Saudi) | 4.5-7.0% | 25 years | Yes | Popular with Western expats, English documentation |
| Bank AlJazira | 5.0-7.0% | 25 years | Yes | Offers Ijara structure, good early repayment terms |
| Alinma Bank | 4.8-6.5% | 30 years | Limited | Fully Islamic bank, competitive for Saudi nationals |
Rates are approximate and change frequently based on SAIBOR and SAMA policy. Variable rates are linked to SAIBOR (Saudi Arabia Interbank Offered Rate). Always request a formal quote from the bank for current rates. Need a bank account first? See our guide to opening a bank account.
Yes, expatriates can obtain home financing in Saudi Arabia, though the requirements are stricter than for Saudi nationals. Here's what banks typically require from expat applicants:
Some banks accept Absher digital verification in lieu of physical documents.
Important for expats: If you leave Saudi Arabia before the mortgage term ends, you must either settle the remaining balance or transfer the financing to another qualified borrower. Banks may include an acceleration clause. Some expats use a shorter term (10-15 years) to reduce this risk. Read more in our property buying guide for foreigners.
SAMA (Saudi Central Bank) regulates all mortgage lending in Saudi Arabia. These rules protect borrowers and ensure responsible lending. Key regulations you should know:
| RETT (Real Estate Transaction Tax) | 5% of price |
| Mortgage processing fee | ~1% or max 5,000 SAR |
| Property valuation | 2,000-5,000 SAR |
| Title deed transfer | ~1,000 SAR |
| Property insurance (first year) | 1,000-3,000 SAR |
| Legal/broker fees (if used) | 2.5% of price |
| Total for 1,000,000 SAR property | ~80,000-85,000 SAR |
There is no annual property tax in Saudi Arabia. The 5% RETT is a one-time charge.
| Cost | Apartment | Villa | Notes |
|---|---|---|---|
| Property insurance | 100-200 SAR | 200-400 SAR | Required by bank |
| Maintenance/compound fees | 300-800 SAR | 500-2,000 SAR | Security, gardens, pools |
| Electricity (SEC) | 200-600 SAR | 500-2,000 SAR | AC is ~70% of bill in summer |
| Water (NWC) | 50-150 SAR | 150-400 SAR | Garden watering adds up |
| Internet | 200-400 SAR | 200-400 SAR | Fiber (STC/Mobily/Zain) |
| Estimated total ongoing | 850-2,150 SAR | 1,550-5,200 SAR | Per month |
Use our energy cost calculator to estimate your electricity bill. Property tax: 0% annually.
Property prices vary dramatically between cities and neighborhoods. Here's a rough guide to help you set realistic expectations and use the calculator with accurate numbers. Use our cost of living calculator to compare overall expenses between cities.
| City | Apartment (2-3 bed) | Villa (3-4 bed) | Popular Areas |
|---|---|---|---|
| Riyadh | 700K - 2M SAR | 1.5M - 5M SAR | Al Nakheel, Al Yasmin, Hittin, Al Malqa |
| Jeddah | 600K - 1.8M SAR | 1.2M - 4M SAR | Al Rawdah, Al Shati, Obhur |
| Dammam/Khobar | 500K - 1.5M SAR | 1M - 3.5M SAR | Al Khobar Corniche, Al Aqrabiyah |
| Smaller cities | 350K - 900K SAR | 700K - 2M SAR | Abha, Taif, Tabuk, Yanbu |
Prices are approximate ranges for mid-quality properties. Luxury areas and new developments can be significantly higher. Check Bayut, Aqar, or Property Finder Saudi for current listings.
1. Transfer your salary to the bank first. Most Saudi banks require 3-6 months of salary credits in their account before approving a mortgage. Start this early - open an account at your preferred bank and transfer your salary there well before you apply.
2. Shop multiple banks. Rates can differ by 1-2% between banks for the same profile. Even a 0.5% difference on a 1M SAR loan over 25 years saves you ~95,000 SAR in total profit payments. Get quotes from at least 3 banks.
3. Fix your rate if you can. Variable rates (linked to SAIBOR) can increase significantly if SAMA raises rates. A fixed rate gives you payment certainty for the entire term. The premium for fixed is usually 0.5-1% - worth it for peace of mind.
4. Pay more down payment if possible. Going from 30% to 40% down on a 1.5M SAR property reduces your financing by 150,000 SAR, saving ~125,000 SAR in total profit over 25 years. It also improves your approval chances and may get you a better rate.
5. Check your SIMAH score. SIMAH is Saudi Arabia's credit bureau. Late payments on credit cards, phone bills, or car loans hurt your score and can result in mortgage rejection. Check your report through the SIMAH website before applying.
6. Factor in the exit scenario. As an expat, consider what happens if you leave Saudi Arabia. Will you sell the property, rent it out (you'll need a property manager), or settle the mortgage early? Shorter terms (15-20 years) reduce this risk but increase monthly payments.
7. Budget for RETT upfront. The 5% Real Estate Transaction Tax is a substantial one-time cost. On a 1.5M SAR property, that's 75,000 SAR you need in cash on top of your down payment. Banks don't finance this.
Yes, but with stricter requirements than Saudi nationals. You typically need a valid iqama with at least 1-2 years remaining, salary transfer to the lending bank, minimum monthly income of 5,000-10,000 SAR (varies by bank), employment letter from your sponsor, and a higher down payment (usually 30% vs 10% for Saudis on their first home). Al Rajhi Bank, SNB, and SABB all offer expat mortgage products.
Murabaha is the most common Islamic mortgage structure in Saudi Arabia. The bank buys the property and sells it to you at a marked-up price (cost + profit margin). You pay this higher price in installments over the agreed term. Unlike conventional mortgages, there's no 'interest' - instead the bank earns a pre-agreed profit. The monthly payment calculation is similar to conventional amortization, but structured as a sale agreement rather than a loan.
For Saudi nationals buying their first home: 10% minimum. For Saudi nationals buying a second/investment property: 30% minimum. For expatriates: typically 30% minimum regardless of whether it's their first property. Some banks may require higher deposits based on your income level and employment stability.
Islamic mortgage profit rates in Saudi Arabia typically range from 4% to 7% depending on the bank, your credit profile, and whether you choose a fixed or variable rate. Variable rates are linked to SAIBOR (Saudi Arabia Interbank Offered Rate). Fixed rates are generally higher but provide payment certainty. Al Rajhi and SNB often have the most competitive rates for salaried employees.
SAMA (Saudi Central Bank) mandates that total monthly debt obligations cannot exceed 65% of your gross monthly salary. This includes the mortgage payment, car loans, credit card minimum payments, and any other financing. Most banks are conservative and prefer 45-55% as their internal limit. Use our calculator to check if your desired property fits within this ratio.
Beyond the mortgage payments, budget for: Real Estate Transaction Tax (RETT) at 5% of purchase price, property valuation fee (2,000-5,000 SAR), mortgage processing fee (typically 1% of loan or capped at 5,000 SAR), property insurance (required by bank, ~500-2,000 SAR/year), and maintenance fees (for apartments/compounds). There is no annual property tax in Saudi Arabia.
This mortgage calculator provides estimates based on standard amortization formulas. Actual financing terms, profit rates, and monthly payments will vary based on your credit profile, bank choice, property type, and current market conditions. Islamic financing structures (Murabaha, Ijara) may have slightly different payment schedules than shown here.
This calculator does not constitute financial advice or a financing offer. Profit rates change frequently based on SAIBOR and SAMA policy. Always obtain formal quotes from multiple banks and consult with qualified financial advisors before making property purchase decisions.