Mortgage calculator for Kuwait 2026

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.

Home finance rules in 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.
• Early repayment: The bank waives interest for the remaining term on early repayment.
• Policy rate: The Central Bank of Kuwait kept the discount rate at 3.5% in September 2026 (secondary source), and the consumer loan interest cap = discount rate + 3%.

Sources

1. Central Bank of Kuwait: instructions on consumer and housing loans for conventional banks (November 2018)
2. Central Bank of Kuwait: instructions for Islamic banks (November 2018)

Related calculators

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