Mortgage calculator for Saudi Arabia 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 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.
• Early repayment: The early repayment cost is capped at 3 months' profit on the declining balance.
• Policy rate: The Saudi Central Bank raised the repo rate to 4.5% on 16 September 2026 (secondary source).

Sources

1. Saudi Central Bank: Responsible Lending Principles for Individuals (Circular 46538/99)
2. Saudi Central Bank: raising the maximum mortgage financing to 90% for a first home (Circular 391000048362)
3. Saudi Central Bank: Consumer Finance Regulations, Article 11 (early repayment)
4. Saudi Central Bank: early repayment guide
5. Saudi Central Bank: rules for calculating the annual percentage rate

Related calculators

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