How do I get a real estate loan in Saudi Arabia?

How do I get a real estate loan in Saudi Arabia?

In this article, we will learn about How do I get a real estate loan in Saudi Arabia? There are many ways and papers required by institutions and banks, which we explain to you in detail.

How do I get a real estate loan in Saudi Arabia?

A cash mortgage is the amount offered by some institutions or banks to help people buy a property they want to own.

The loan includes what helps the customer to complete the services that the property needs, whether it is tourism, commercial, administrative, or even a commercial loan.

Mortgage providers provide for a mortgage loan. The amount of loan financing depends on the value of the mortgaged property.

And according to the value of the loan, the interest on the loan is determined, which makes it easier to get the loan in many banks and companies.

In the event that you want to obtain this loan, you must go to any institution or bank that provides this service and inform you of all the details, interest rate, number of months and other customer service representatives.

After knowing how to obtain a cash mortgage, it should be noted that there are a set of conditions that must be met by a person in order to obtain a cash mortgage, the most prominent of which are the following:
Record all the required data in the designated place included in the application submitted by the bank or institution.

  • Bring a copy of the applicant’s identity card.
  • In case the person works in the private sector, he must submit a letter to obtain the Chamber of Commerce stamp.
  • To be a Saudi citizen.
  • The monthly income must not be less than 3,300 riyals.
  • Their ages range from twenty to sixty years.
  • The person is a permanent employee.
  • He transfers his salary to the bank from which he will get the loan.
  • Provide an initial amount of money for the loan at a rate ranging from ten percent to thirty percent. Depending on the sector in which you operate, as well as your credit standing, as well as the type of property.
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Read also: Conditions for obtaining a loan from Emirates Bank

Conditions for obtaining a real estate loan from Al Rajhi Bank

Al Rajhi Bank is one of the institutions that grant real estate cash loans, according to a set of conditions set by the bank, which include the following:

  • The loan applicant must be a Saudi national.
  • The monthly salary should not be less than three thousand five hundred Saudi riyals.
  • The age of the applicant starts from the age of 18.
  • Six months have passed since the person worked and his work was approved by Al-Rajhi.
  • That the maximum age of the person be sixty years, or that the age of retirement does not exceed sixty-five years.
Conditions for obtaining a real estate loan from Al Rajhi Bank
Conditions for obtaining a real estate loan from Al Rajhi Bank

Advantages of obtaining a mortgage from Al-Rajhi

As we mentioned earlier when talking about how to get a real estate loan in cash in Saudi Arabia, we moved on to talk about the advantages of obtaining a loan from Al-Rajhi, the most prominent of which are the following:

  • Advance payment of client funds.
  • Repayment is up to five years.
  • Your investment in any of the projects generates a profit that can be used and repaid the loan.
  • Provides free insurance.
  • Ease of transactions and easy payment of funds.
  • Early repayment is also possible when the borrower has funds and wants to finish repaying them.
  • The possibility of selling your property before the completion of the payment of what the person owes to the bank, subject to all the conditions that have been established for the advance payment.
  • It also allows a person to obtain real estate financing in a record time after completing the papers and documents.

Also read: Requesting a loan from Al Rajhi Bank and what are the terms of personal financing

Al-Rajhi calculator for real estate financing

Al Rajhi Bank also offers an important feature, which is providing a calculator to calculate the value of the home loan through its website, and below we will learn the steps to do so:

  • go to the Al-Rajhi website.
  • Click Sign In at the top left of the page.
  • Add the necessary data to log in.
  • Go to Al Rajhi Home Finance Calculator.
  • Choose a career sector.
  • Enter the sale price of the property.
  • Adding the value of the loan required to be obtained through the company or institution in which the work takes place.
  • The calculator works on calculating the financing for the applicant, as well as the financing period and the value of the monthly installments that will be paid.
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Real estate financing from the National Bank of Saudi Arabia

When talking about how to get a real estate loan in Saudi Arabia, we learned that there are many banks and institutions that offer this type of loan. Including the National Bank of Saudi Arabia, where this loan is provided for the purpose of allowing people to own the real estate they want.

This bank, like Al-Rajhi, also provides real estate services in accordance with Islamic law and provides many different facilities in relation to real estate loans, and the most famous of these facilities are the following:

  • Competitive prices and benefits for the customer.
  • It is not necessary to transfer the payroll to the bank.
  • Discounted and privileged prices on homes under construction for all beneficiaries of the Ministry of Housing and the Real Estate Development Fund.
  • Available to sole proprietorship clients.
  • It funds people over the age of 75.
  • Grace periods of up to six months on self-build products and 36 months on modular build products.

Real estate financing requirements from the National Bank of Saudi Arabia:

There are some requirements set by the National Bank of Saudi Arabia to grant real estate loans to individuals, the most important of which are the following:

  • The age of the person must be between twenty and sixty years.
  • The monthly income per person shall not be less than three thousand riyals.
  • You must also be a Saudi citizen.
  • The loan applicant must also work for at least one month without interruption.
  • A down payment ranging from 10% to 30% is offered depending on the client’s field, credit status and property type.

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Mortgage calculator

With our knowledge of how to get a cash mortgage in Saudi Arabia, we must know that for the convenience of the citizen, a financing calculator has been provided to calculate and plan the financing that corresponds to the customer or applicant. Estimating the monthly installments of the property, and the ability to modify the unit price, as well as the advance, price, loan term, and choosing the type of property to know the monthly installments for the customer.

Mortgage Calculator All Banks:
All banks in the Kingdom seek the convenience of the Saudi citizen, because they calculate real estate financing in the same way.

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However, there will be a slight difference in the division of the profit rate and the repayment period, but with Al Rajhi Bank, the citizen will be comfortable and easy, and the Real Estate Development Fund is working to provide all support and assistance to him. Covering the costs of the loan.
Subsidized Mortgage Calculator:
The financing calculator works with the Real Estate Development Fund customer support, and the support rate reaches 100%. For those whose salaries are 14,000 Saudi riyals or less, they get a profit margin that may reach 500,000 Saudi riyals, which is included in the financing amount.

This is financing for residential real estate, in cooperation with the Real Estate Development Fund, to finance private citizens for Saudis whose names are included in the housing subsidy lists of the Development Fund. And they have all the conditions from the Ministry of Housing, and he wants to get full support from the government through Saudi banks. As for real estate investment, the Real Estate Development Fund supports the profit calculated on the basis of the financing amount until it reaches 500 thousand riyals.

Mortgage calculator
Mortgage calculator

Subsidized mortgage calculator from the National Bank

The Mortgage Finance Calculator service is one of the most important services provided by the National Bank to customers, and it supports customers to help them obtain the real estate they dream of, through the following steps:

  • Subsidized loans are granted to clients in the real estate and housing sectors.
  • These loans are also offered to clients to help them build the properties they want or want to own.
  • Loans are compatible with the provisions of Islam.
  • The bank provides a large amount of money, and the amount can reach 590,000 riyals.
  • The repayment period is long and can reach 10 years.
  • The loan is granted in cooperation with the Development Fund.
  • The bank also works to provide many housing services and products related to different real estate.

And so we have clarified How do I get a real estate loan in Saudi Arabia? In some detail, as real estate financing is considered one of the most important financing programs offered by institutions and banks to the Saudi citizen.

You may also be interested in: Conditions for obtaining a loan from the Algerian Salam Bank

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