Mortgage calculator 2026: monthly instalment and how much a bank will lend

Repayment schedule

How the calculation works

• Reducing balance: each month the bank charges profit only on what you still owe, so early instalments are mostly profit and later ones mostly principal.
• Down payment: central banks cap how much of the price a bank may lend (the loan-to-value limit). The rest is your down payment.
• Salary deduction cap: all your instalments together may not exceed a set share of your income (the debt burden ratio). This decides the largest loan you can get.

Islamic banks call the bank's return "profit" rather than interest; the arithmetic is the same.

Regulatory rules by country

🇸🇦 Saudi Arabia

• The maximum financing is 90% of the value of a citizen's first home (10% down payment).
• Second home or more: 70% at banks and 85% at mortgage finance companies.
• Deduction ratio including the mortgage: 55% for those earning up to 15,000 riyals (65% for housing support beneficiaries), and 65% for those earning between 15,001 and 24,999 riyals.
• A mortgage contract may bar early repayment during the first two years.

🇦🇪 United Arab Emirates

• The maximum financing for expats is 80% for a first home up to 5 million dirhams and 70% above that, and for citizens 85% and 75%.
• Second home or investment property: 65% for citizens and 60% for expats. Off-plan property: 50%.
• The maximum term is 25 years, and instalments on all debts may not exceed 50% of income.
• The loan may not exceed 8 times annual income for citizens and 7 times for expats.
• Banks set the borrower's age at the last instalment under their own policies (the Central Bank removed the 65 and 70 age caps).

🇰🇼 Kuwait

• A housing loan of up to 70,000 dinars for a term of no more than 15 years.
• Consumer and housing loans combined up to 95,000 dinars.
• The instalment cap of 40% of net salary (30% for retirees) covers all loans.
• The interest on a housing loan is repriced every 5 years by no more than 2% up or down.

🇶🇦 Qatar

• Published 2013 instructions: financing of 70% of the property value over 20 years for employees.
• According to the Qatar News Agency (July 2023): citizens up to 80% (75% above 6 million) over 30 years, and residents up to 75% (70% above 6 million) over 25 years.
• The instalment cap is 75% of salary for citizens and 50% for expats.

🇧🇭 Bahrain

• Housing finance secured by a first mortgage on the borrower's home is exempt from the consumer finance rules, so it is not subject to the 50% cap or the 7-year term, and we found no regulatory cap on the financing ratio or term.
• Ministry of Housing and Urban Planning programmes are open to citizens on their own terms.

🇴🇲 Oman

• The Central Bank cut the down payment margin for first-home buyers to 10% from 20% as part of the stimulus package (September 2020), according to press sources.
• Housing loan terms up to 25 years, and bank documents state a maximum age of 60 at the end of the loan and 70 for retirees.

🇪🇬 Egypt

• Mortgage instalments under Law 148 of 2001 count towards the 50% limit at a ratio of 40% of income.
• Financial Regulatory Authority Decree 111 of 2015: financing by mortgage finance companies may not exceed 90% of the residential property value (100% under the ijara system), according to a secondary source.
• Subsidised mortgage initiatives for new applications since 15 October 2025: 8% declining for low-income and 12% for middle-income applicants, instead of 3% and 8% before, according to press reports.

🇯🇴 Jordan

• The Central Bank instructions set no cap on the financing ratio, term or age for housing loans; each bank sets them.
• Association of Banks initiative (November 2024): first-home financing up to 100% and up to 150,000 dinars for those earning up to 2,500 dinars, over up to 25 years, according to press sources.
• Market example (March 2026, before the September rise): housing loans between 7.25% and 8.5% declining.

Related calculators

Results are estimates for information only. Banks set their own rates and fees within these rules, so check the offer you receive.