The Real Estate Bank supports Saudi citizens in purchasing and building new homes by offering real estate financing loans.
This initiative allows borrowers to receive financial assistance tailored to their real estate needs, with favorable terms and benefits, including moderate monthly installments.
Following the Real Estate Bank guidelines, borrowers can receive amounts up to 500,000 Saudi Riyals through this program.
The borrower’s age must not exceed 70 years, and the guarantor’s age must not exceed 55 years. The monthly income should not exceed 12,500 SAR. The loan amount ranges from 18,000 to 60,000 SAR, with a repayment period of up to 4 years, and payments are made on a monthly basis.
Benefits of the New Real Estate Financing Loan
- Financing amounts up to 500,000 Saudi Riyals, secured with a cash guarantee.
- The down payment for the primary residence starts at 10%, while for the secondary residence, it is 30%.
- The financing complies with Islamic Sharia provisions.
- Free insurance coverage for protection against earthquakes, fires, and natural disasters is included.
- The salary deduction percentage does not exceed 65% of the total salary.
- The repayment period can extend up to 25 years.
Read: Conditions and Requirements of Renovation Loan.
The New Real Estate Financing System
Cash Guarantee:
The new financing initiative provides a cash guarantee covering up to 5% of the housing cost, facilitated through the Real Estate Development Fund, significantly reducing the required down payment.
Value of Real Estate Financing:
Citizens with a monthly salary of less than 14,000 Saudi Riyals are eligible for financing that can cover up to 100% of the home value, with the maximum financing amount reaching 500,000 Saudi Riyals.
Steps to Apply for the Real Estate Financing Loan:
- Prepare Required Documents: Gather all necessary documentation, including your ID, property details, and proof of income.
- Submit Your Application: Submit your application through the official website or by visiting one of its branches.
- Application Review: Once the documents are submitted, the bank will review the application to ensure all conditions are met.
- Receive Loan Approval: You will receive a notification with the specified loan amount.
Conditions for Obtaining Real Estate Financing
- Saudi Nationality: Applicants must be Saudi citizens to qualify for real estate financing.
- Age: Applicants must be between 20 – 70 years old.
- Employment and Income: Applicants must be officially employed for at least one month in a government institution or three months in the private sector.
- Current Account: Some banks require applicants to have a current account to facilitate salary transfers.
- Salary Requirement: The minimum monthly salary varies by bank but must be 3,000 Saudi Riyals.
- Apartment Size: The apartment must have a minimum area of 80 square meters.
- Down Payment and Area Selection: Down Payment: A 10% – 30% down payment of the loan value is required.
- Area Selection: Some financing entities specify certain cities where the property must be located. Therefore, applicants should carefully review the available areas and choose accordingly.
- Apartment Condition: The apartment must be fully completed, vacant, and equipped with essential water, gas, and electricity services. It must also be officially documented.
New Housing Bank Conditions
Several housing banks in Saudi Arabia offer real estate financing services, each with specific conditions. Key conditions include:
- The bank must approve the financing request.
- Apartment Condition: The selected apartment must be vacant and fully finished.
- Property Age: The property age must not surpass 25 years.
Inspection of the Housing Unit:
- If the residential property is older than 15 years, the client must request an inspection by the Real Estate Fund. A deduction form must also be completed, allowing for a reduction of up to 20% of the financing amount.
- Required Documents: The applicant must ensure that all necessary documents are provided. Detailed information about the required documents can be found on the Real Estate Development Fund’s official website.
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