Saudi Arabia 💰 SAR Last updated2026-05-28

Tamweel aqari Calculator Saudi Arabia

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Quick answer (Saudi Arabia)

A SAR 1,200,000 Murabaha home financing at 5.85% over a 25-year term works out to a monthly payment of about ‏٧٬٦٢٢ ر.س.‏, with total interest of ‏١٬٠٨٦٬٥٨٨ ر.س.‏ over the full term.

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Mortgage Calculator

SAR

Home Value

SAR

LTV 80% · No PMI ✓

Loan Amount

SAR

Interest Rate

Term

Total Monthly

‏٩٬٦٢٢ ر.س.‏

PITI

Principal + Interest

‏٧٬٦٢٢ ر.س.‏

48% goes to interest

Total Interest

‏١٬٠٨٦٬٥٨٨ ر.س.‏

over 25 years

Monthly Breakdown

Principal & Interest‏٧٬٦٢٢ ر.س.‏

Property Tax (1.1%/yr)‏١٬٣٧٥ ر.س.‏

Homeowner's Insurance (0.5%/yr)‏٦٢٥ ر.س.‏

Total Monthly‏٩٬٦٢٢ ر.س.‏

Principal vs Interest Split

52% principal

48% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Tamweel aqaris in Saudi Arabia

Typical loan

‏١٬٢٠٠٬٠٠٠ ر.س.‏

in Saudi Arabia

Typical rate

5.85% p.a.

prime borrower, 2026

Typical term

25 years

most common

Market overview

Saudi mortgages are dominated by Al Rajhi Bank (the world's largest Islamic lender), SNB (Saudi National Bank after the 2021 NCB-Samba merger), Riyad Bank, and Bank AlBilad. Most home financing in Saudi is Sharia-compliant — typically Murabaha (cost-plus sale) or Ijara (lease-to-own) structures. The Real Estate Development Fund (REDF) subsidizes a large share of citizen mortgages under Vision 2030 housing programs.

Why 5.85% is the typical rate

5.85% reflects a typical Murabaha profit rate for a Saudi national at 90% LTV in early 2026, after SAMA followed the Fed in cutting policy rates. Expat residents face stricter eligibility (35-65% LTV typical) and higher rates by 100-200 bps.

Tax & regulatory notes

Saudi Arabia has no personal income tax, so no mortgage interest deduction exists (none needed). VAT (15%) applies to new-build residential property but is reimbursed for first-time Saudi citizen buyers under the Sakani housing program. Real estate transaction tax (RETT) of 5% applies to property transfers (replaced VAT for resales). SAMA caps personal LTV at 90% for Saudi nationals and 70% for expats.

🧮 Worked example

A SAR 1,200,000 Murabaha home financing at 5.85% over a 25-year term

Loan amount

‏١٬٢٠٠٬٠٠٠ ر.س.‏

Annual interest rate

5.85%

Term

25 years (300 months)

Monthly payment

‏٧٬٦٢٢ ر.س.‏

Total interest paid

‏١٬٠٨٦٬٥٨٨ ر.س.‏

Total paid (principal + interest)

‏٢٬٢٨٦٬٥٨٨ ر.س.‏

❓ FAQ (Saudi Arabia)

Common questions in Saudi Arabia.

Can foreigners get a mortgage in Saudi Arabia?

Yes, but with restrictions. Expat residents (Iqama holders) can get mortgages from Al Rajhi, SNB, and Bank AlBilad with LTV capped at 65-70%, requiring 2+ years of Saudi residency and salary income of SAR 8,000+/month. Non-residents cannot get Saudi mortgages. Foreign ownership of Saudi real estate is restricted to designated zones (NEOM, Red Sea Project, Riyadh foreigner-permitted areas).

What is the REDF subsidy and who qualifies?

REDF (Real Estate Development Fund) under the Ministry of Housing's Sakani program subsidizes home mortgage profit rates for eligible Saudi citizens (first-time buyers, income under SAR 14,000/month, family with dependents). The subsidy ranges from full profit-rate coverage to partial subsidies depending on income bracket, often making effective rates 0-2%. The Vision 2030 goal is 70% home ownership by 2030 (up from ~62% in 2020).

Murabaha vs Ijara — which is more common in Saudi home financing?

Murabaha (cost-plus sale) is the most common — the bank buys the property and sells it to you at a markup payable in installments. The "profit rate" is the equivalent of conventional interest. Ijara (lease-to-own) is used in some products where the bank retains ownership and rents the property to you with a final transfer at lease end. Both are Sharia-compliant and SAMA-regulated; pricing differs by 10-30 bps between structures.

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