| Down payment (10%) | SAR 90,000 |
| Total profit paid to the bank | SAR 682,233 |
| Total you repay | SAR 1,492,233 |
Cash you need on the day
| Real estate transaction tax (5%) | SAR 0 |
| Broker commission (2.5% + 15% VAT) | SAR 25,875 |
| Bank admin fee (1%, max SAR 5,000) | SAR 5,000 |
| Valuation (about SAR 2,500) | SAR 2,500 |
| Down payment + costs | SAR 123,375 |
The state pays the transaction tax on the first SAR 1 million of a citizen's first home. Eligible families may also get Sakani support toward the profit.
The dirham has been pegged at 3.6725 to the US dollar since 1997, and the Saudi riyal at 3.75 since 1986.
UAE and Saudi central banksHome finance in Saudi Arabia in brief
- Down payment. Under Saudi Central Bank (SAMA) rules, banks can finance up to 90% of a first home for a citizen, so 10% down. For other purchases expect around 30% down.
- Profit rate. Home finance is Islamic (murabaha or ijara), so banks quote a profit rate, shown as an annual percentage rate (APR). Compare APRs between banks, not monthly payments alone.
- Term. Usually up to 25 or 30 years, ending before retirement age.
- Real estate transaction tax. 5% of the price, paid when ownership transfers. For a citizen's first home the state pays it on the first SAR 1 million.
- Broker. Commission is capped at 2.5% of the price, plus 15% VAT.
Eligible families can also get help through the Sakani housing programme, which can subsidise part of the profit. All banks use the same basic maths, so enter the APR from each bank's offer to compare them here.
Questions people ask
How much down payment do I need in Saudi Arabia?
10% for a citizen's first home, because banks can finance up to 90%. Other purchases usually need around 30%.
Who pays the real estate transaction tax?
The buyer usually pays the 5% tax. For a citizen's first home, the state pays the tax on the first SAR 1 million of the price.
Is the profit rate the same as interest?
It works the same way in the maths: the APR is the yearly cost of the finance. Saudi home finance is Sharia-compliant, so it is called profit.
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Estimates, not advice. Our calculators follow the published rules as we understand them (checked October 2026), but they are not financial, tax or legal advice. Rules change and your contract, bank or free zone may differ. Confirm with the labour ministry, the tax authority, your bank or a licensed adviser before you act. Full disclaimer