| Minimum Salary | Salary Transfer | Islamic Finance | Maximum Term | Flat Rate | Reducing Rate | |
|---|---|---|---|---|---|---|
SABB - Home Finance
|
Minimum Salary: SAR 5,000 | Salary Transfer: Yes | Early Settlement Fees: Yes | Maximum Term: 25 Years | Flat Rate: 3.59 | Reducing Rate: - |
Own your property and fly in the sky of your dreams
If you dream of buying a ready house, or you want to build your own home, or you want to buy a housing unit under construction or get other real estate options.
We at SAB offer you the best Home Finance programs that help you achieve owning your dream house, in cooperation with the Real Estate Development Fund and the Ministry of Housing.
At SABB, we understand that buying a house is one of the most important decisions in a customer’s life. We also know that while most people dream of owning a perfect home, achieving that goal can be quite a challenge, especially when it comes to arranging the financing required to making such an expensive purchase.
SABB provides you with multiple options to help you own your dream home with easy financing solutions featuring competitive profit rates and high quality customer service.
SABB offers a range of Shariah compliant Home Finance products using:
Ijarah concept:
Where SABB purchases the property and leases the same to the customer over a finance period up to 25 years with a promise to transfer the ownership to the customer at the end of lease period. The customer pays a part of the lease rentals in advance while the balance is payable to SABB in monthly installments over the finance period.
- Murabaha concept:
Where SABB purchases the property and sales it to the customer over a finance period. The customer pays a part of the purchase price in advance while the balance is payable to SABB in monthly installments over the finance period.
SABB finances the following properties under Ijarah concept:
- Completed Villa, Duplex, Apartment.
- Land for building a home in future
- Build on a customer’s existing land based on Ijarah Mausoofa Fi-Dhimah concept
SABB finances the following properties under Murabaha concept:
- Completed Villa, Duplex, Apartment.
Lease Annual Percentage Rate:
SABB reviews the lease annual percentage rate every two years. The Lease annual percentage rate will be comprised of:
- SABB benchmark rate which will be reviewed every two (2) years as per the prevailing market rate (SWAP).
- Agreed Margin over and above SABB benchmark rate. The Margin will remain the same and will not be changed during the finance period.
Down Payment Required:
- Land Finance: 30%
- Home Finance: 10% for the resident only
- Home Construction: The customer is not required to pay a down payment in cash, however, the land value will be considered as down payment.
| Property Market Value | Loan to value Ratio | Fixed or Variable Rate | APR | Maturity in Years | Payment Type | Monthly Repayment Amount* | Early Payment Charges |
| 500,000 | 90% | Fixed | 6.78% | 25 Years | Principal and Interest / Profit | 3,030.00 | Profit of future 3 installments |
| Property Market Value | Loan to value Ratio | Fixed or Variable Rate | APR | Maturity in Years | Payment Type | Monthly Repayment Amount* | Early Payment Charges |
| 500,000 | 90% | Fixed for first 2 years Repriced every 2 years SWAP rate plus 3% | 5.30% | 25 Years | Principal and Interest / Profit | 2,649.04 | Profit of future 3 installments |
- The applicant should be a Saudi national
- Applicant’s age at the time of finance should not be less than 21 years and not exceed 65 years upon expiry of finance period
- Length of service for the applicant with current employer should be for at least 3 months
- Minimum basic salary should not be less than SAR 5,000. For joint applicants, each applicant should have minimum basic salary of SAR 3,000
- Salary should be assigned/transferred to your account with SABB
- The property should be situated within the Kingdom of Saudi Arabia
- Copy of the Applicant’s valid I.D. duly signed
- Property/Land location's form
- Sale contract
- Copy of the Title Deed
- Copy of Building construction License OR Electricity Meter License
- Land Split Letter from Notary Public (as appropriate – if the land has been subdivided).
- Copies of Property Owner’s and Witnesses I.Ds
- Salary Introduction Letter less than one month old
- Salary Assignment Letter (signed by authorized signatory)
- Drawings, Specifications & Designs approved from the city municipality in A4 size. (only for Home Construction Finance application)
