Buying your first home in Saudi Arabia is an exciting milestone, but navigating the mortgage process can feel overwhelming—especially if you’re new to it. With a growing real estate market and supportive government initiatives, homeownership is more accessible than ever. However, understanding the steps involved is crucial to securing the right home loan that fits your financial situation and long-term goals. From checking your eligibility and credit score to comparing lenders and preparing the necessary documents, each phase of the process requires careful planning. This guide is designed to simplify your journey as a first-time buyer in Saudi Arabia, providing clear, step-by-step instructions to help you make informed decisions. Whether you’re purchasing a villa in Riyadh or an apartment in Jeddah, here’s everything you need to know to get started with confidence.
Buying your first home is a major milestone—and in Saudi Arabia, it’s becoming increasingly achievable thanks to government initiatives, affordable mortgage programs, and growing housing developments. Whether you’re a Saudi citizen or an expatriate eligible under certain conditions, understanding how to navigate the home loan process is essential.
Why Consider a Home Loan in Saudi Arabia?
With increasing demand for affordable housing, the Saudi government has introduced several reforms and financial products under the Saudi Vision 2030 initiative. One of the key institutions supporting this is the Real Estate Development Fund (REDF), along with partnerships with local banks.
Key stats (2024-25):
- ✅ Over 65% of Saudi citizens aged 25-40 aspire to own homes within 5 years.
- 🏘️ More than 1.5 million housing units are being planned by 2030.
- 💰 Interest rates for home loans range from 3.5% to 5.5% annually.
- 🏦 Most banks offer loans with repayment terms of up to 25 years.
📝 Step-by-Step Guide to Getting a Home Loan in Saudi Arabia
Step 1: Determine Your Eligibility
Before applying, check whether you qualify. Most banks require:
- Minimum age of 21 years
- A valid Saudi national ID or Iqama (for expats)
- A minimum monthly income (usually SAR 4,000 to SAR 7,000 depending on the bank)
- Permanent employment for at least 6 months to 1 year
📌 Example:
Ali, 28, works as an IT professional in Riyadh earning SAR 9,000/month. He has been with his company for 2 years. He qualifies for a home loan with most banks.
Step 2: Check Your Credit Score
Saudi Arabia has a centralized credit bureau, SIMAH, which tracks your credit history.
- A good score (700+) can help secure lower interest rates.
- You can request your SIMAH report online for a small fee.
📌 Tip: Settle any outstanding debts before applying for a mortgage to improve your creditworthiness.
Step 3: Estimate How Much You Can Borrow
Use an online mortgage calculator to estimate:
- Loan amount
- Monthly installment
- Repayment period
- Total interest payable
📌 Example:
If Ali wants to buy a property worth SAR 700,000, the bank may offer him 85% financing (SAR 595,000) over 20 years. At 4% interest, his monthly payment would be approximately SAR 3,600.
Step 4: Choose a Bank or Mortgage Provider
Popular home loan providers in Saudi Arabia:
- Al Rajhi Bank
- SNB (Saudi National Bank)
- Riyad Bank
- Banque Saudi Fransi
- SABB
Compare:
- Interest rates (fixed vs variable)
- Down payment requirements
- Processing fees
- Early repayment charges
Step 5: Get Pre-Approval (Optional but Recommended)
A pre-approval gives you an official estimate of how much you can borrow. This strengthens your bargaining position with sellers and shows that you’re a serious buyer.
📌 Pro tip: Some banks offer pre-approval online in 24–48 hours.
Step 6: Find a Property
Now that you know your budget, search for a home:
- Use platforms like Property Finder Saudi, Bayut.sa, or Aqarmap
- Check for government-subsidized housing under Sakani Program
📌 Example:
Ali finds a 3-bedroom villa in north Riyadh listed for SAR 680,000—within his loan eligibility.
Step 7: Submit a Formal Loan Application
You’ll need to submit:
- Application form
- National ID or Iqama
- Salary certificate or employment contract
- 3–6 months of bank statements
- Property details (title deed, valuation report)
📌 Note: Some banks may send a representative to evaluate the property.
Step 8: Approval & Signing the Agreement
If approved:
- The bank will issue a loan offer letter
- Once you accept, you’ll sign a loan agreement
- Funds are disbursed directly to the seller/developer
📌 Warning: Read the fine print regarding early payment penalties or variable interest rates.
Step 9: Property Transfer & Registration
Finally:
- The property is transferred to your name
- You may need to pay property registration fees (approx. 5% of value unless exempted under housing schemes)
🛡️ Government Support & Subsidies
For Saudi citizens, there are extra benefits:
- Sakani Program: Provides subsidized housing and financing
- Ministry of Housing & REDF support: Covers interest on behalf of qualified citizens for homes up to SAR 500,000
📌 Example:
If Ali applies through Sakani, he may get interest-free support on the first SAR 500,000 of his loan.
📌 Final Thoughts
Getting a home loan in Saudi Arabia can be straightforward if you’re well-prepared. Take time to understand your eligibility, research lenders, and make use of government support if available. For first-time buyers, especially citizens, the system is increasingly supportive.
Ready to buy your first home?
Start by checking your credit score and contacting a mortgage advisor to assess your best options.
📊 Quick Checklist for First-Time Homebuyers
✅ Check your SIMAH credit score
✅ Get a salary certificate & 3-6 months of bank statements
✅ Compare bank offers (rates, fees, terms)
✅ Get pre-approval for clarity
✅ Apply via REDF/Sakani if you’re a citizen
