Money · المال

Saudi Arabia Mortgage

Estimate your Saudi Arabia home loan - CBSaudi Arabia-compliant LTV limits, monthly payment, total interest and total cost over the full tenure.

Last reviewed 27 April 2026· Source: CBSaudi Arabia Mortgage Regulations 31/2013
CBSaudi Arabia LTV limits (under SAR 5m): residents 80% (1st property), Saudi Arabia Nationals 85%, Non-Residents 75%. Maximum tenure is 25 years; loan must end before age 70.
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How Saudi Arabia mortgages work

CBSaudi Arabia Mortgage Regulation 31/2013 sets the loan-to-value ceilings: a Saudi Arabia resident can borrow up to 80% of the value of a first property under SAR 5 million; Saudi Arabia Nationals borrow up to 85%; Non-Residents up to roughly 75%. Properties above SAR 5 million require a higher down payment, and second properties carry tighter ratios.

The monthly payment uses the standard amortization formula. Saudi Arabia banks typically offer a fixed introductory rate for the first 1-5 years, then a variable rate tied to the EIBOR. Always compare the post-fixed rate, not just the headline.

Worked example

A resident buying a SAR 2,000,000 property with a 20% down payment borrows SAR 1,600,000. At a 4.5% fixed rate over 25 years, the monthly payment is roughly SAR 8,895, total interest paid over the life of the loan is SAR 1,068,500, and total cost (loan + down payment) is around SAR 3,068,500.

Quick formulas

r = annual rate ÷ 12. n = years × 12.
Monthly payment = L × r × (1+r)n ÷ ((1+r)n − 1).
Total interest = monthly × n − loan.

Frequently asked questions

What is the maximum LTV for a Saudi Arabia mortgage?
Residents 80% on a first property under SAR 5m; Saudi Arabia Nationals 85%; Non-Residents around 75%. Above SAR 5m requires more down payment.
How is the monthly payment calculated?
Standard amortization: M = L × r × (1+r)^n ÷ ((1+r)^n − 1).
What is the maximum tenure?
25 years, with the loan ending before age 70 for salaried buyers (65 for self-employed).
Are Saudi Arabia mortgage rates fixed or variable?
Most banks offer a 1-5 year fixed period, then a variable EIBOR-linked rate.
What other fees apply when buying property?
Riyadh charges 4% DLD transfer, ~2% agency commission, 0.25% mortgage registration, plus bank arrangement fees and Oqood/title fees.

Reference only. Rates are indicative - get a formal pre-approval from a Saudi Arabia-licensed bank before committing.