Mortgage Calculator: How Much Property Can You Afford Under SAMA Rules?
This calculator estimates the maximum property value and the real-estate financing you may qualify for under Saudi Central Bank (SAMA) published rules, based on your monthly income, your Debt Burden Ratio (DBR), and the Loan-to-Value (LTV) ratio. All figures are estimates derived from publicly available regulations and do not constitute financial advice or a credit approval decision.
What Is LTV and How Much Down Payment Is Required?
The Loan-to-Value (LTV) ratio determines how much of the property price the bank finances; the rest is the down payment you pay from your own funds. SAMA sets the following ceilings for citizens:
- First home: financing up to 90% — i.e. a down payment of at least 10%.
- Additional/second home: financing up to 70% through banks (around 85% via real-estate finance companies).
These are regulatory maximums; a bank may apply a lower LTV based on its official valuation of the property and your profile, which would raise the required down payment.
Mortgage DBR vs Personal-Loan DBR
For a personal loan, SAMA applies a 33% Debt Burden Ratio cap. For real-estate finance, banks generally allow a higher ratio, because housing is an essential need and the property itself serves as collateral:
Available installment = (DBR × monthly income) − existing obligations
Mortgage DBR is commonly in the 45%–55% range, and varies from bank to bank.
There is no single fixed figure — some banks raise the ratio for public-sector and military borrowers. That is why the calculator lets you adjust the DBR manually to see its effect on the property value. Treat the result as an estimate, not a commitment from the bank.
How Are the Financing Amount and Property Value Calculated?
First, the available monthly installment is converted into a financing amount using the declining-balance (annuity) formula:
Where: P = financing principal, PMT = available monthly installment, r = monthly profit rate (annual ÷ 12), n = number of months (years × 12).
Then the property value and down payment are derived from the LTV:
Down Payment = Property Price − Financing
Illustrative Table: First Home
Estimates for a SAR 15,000 income, first home at 90% LTV, 5% annual profit rate, 25-year term, with no existing obligations:
| DBR | Available Installment | Financing (est.) | Property Value (est.) | Down Payment (10%) |
|---|---|---|---|---|
| 45% | SAR 6,750 | ~SAR 1,155,000 | ~SAR 1,283,000 | ~SAR 128,000 |
| 50% | SAR 7,500 | ~SAR 1,283,000 | ~SAR 1,426,000 | ~SAR 143,000 |
| 55% | SAR 8,250 | ~SAR 1,411,000 | ~SAR 1,568,000 | ~SAR 157,000 |
Estimates for a SAR 15,000 gross income, first home (90% LTV), 5% annual profit rate, 25-year term, no existing obligations. Figures are rounded and vary in practice by bank, rate type, and property valuation.
REDF and Housing Subsidy Support
The Real Estate Development Fund (REDF) provides housing support to eligible Saudi citizens through the Sakani program, including down-payment support or subsidized/profit-free financing on part of the amount. An often-cited program ceiling is around SAR 500,000 of support.
The subsidy amount and eligibility depend on the Fund's assessment and rules and can change over time. This calculator does not factor in REDF support and does not promise any specific entitlement — it is for information only. To confirm your eligibility and support amount, check the Sakani platform and the Fund directly.
Factors That Affect the Bank's Decision
The calculator gives the theoretical ceiling from DBR and LTV. Banks also review additional factors before final approval:
- Credit history: Your SIMAH record and the regularity of past repayments.
- Property valuation: The bank-appraised market value can reduce the LTV applied.
- Income stability and source: Government employees typically get better terms than the private sector.
- Borrower's age: Financing must end before a certain age, which can shorten the available term.
- Existing obligations: Current loans and cards reduce the installment available for the mortgage.
- Iqama validity (expats): Mortgage finance for expats is more restricted and subject to special conditions.
Frequently Asked Questions
What is the maximum mortgage LTV for a first home in Saudi Arabia?
The Saudi Central Bank (SAMA) caps the Loan-to-Value (LTV) ratio for citizens' real-estate finance so that financing reaches up to 90% for a first home — meaning a minimum down payment of 10% of the property value. For an additional or second home, financing through banks typically reaches up to 70% (and around 85% through real-estate finance companies). These are regulatory ceilings; a bank may apply a lower LTV based on its valuation of the property and your profile.
Why is the mortgage DBR higher than the personal-loan cap?
For personal loans, SAMA applies a 33% Debt Burden Ratio cap. For real-estate finance, banks generally allow a higher ratio — commonly in the range of 45% to 55% — because housing is an essential need and the property itself serves as collateral. The actual figure varies by lender and borrower profile, and may be higher for some public-sector and military borrowers. There is no single fixed number; treat the calculator's output as an adjustable estimate.
What is the longest mortgage tenor available?
Most banks offer repayment terms of up to 25–30 years (300–360 months) for residential real-estate finance. A longer tenor lowers the monthly installment and raises the financing you qualify for, but increases the total profit paid over the life of the loan. The available term varies by bank and by the borrower's age at the end of financing.
What are mortgage profit/interest rates in 2026?
Residential mortgage profit rates in 2026 are roughly 4% to 6% per year, with some major banks having offered mid-4% rates over 20–30 year terms. These figures are indicative only and change frequently depending on the bank, the rate type (fixed or variable), your profile, and current offers. Always request a formal quote from the bank.
What is the Real Estate Development Fund (REDF) and how does it help?
The Real Estate Development Fund (REDF) provides housing support to eligible Saudi citizens through the Sakani program, including down-payment support or subsidized/profit-free financing on part of the amount. An often-cited program ceiling is around SAR 500,000 of support. The subsidy amount and eligibility depend on the Fund's assessment and rules and may change. This calculator does not factor in REDF support and does not promise any specific entitlement — check the Sakani platform and the Fund directly.
Does this calculator guarantee mortgage approval?
No. The calculator gives a theoretical estimate of the maximum property value and financing based on your income, debt burden ratio, and LTV — it is not a credit approval. Banks also review your SIMAH credit record, the property valuation, income stability, length of service, and (for expats) Iqama validity. The actual outcome varies by each bank's policy.
Know Your Income and Eligibility First
To accurately estimate your monthly income before using this calculator, use the Saudi Salary Calculator to see your gross pay including housing and transport allowances. To check your non-property borrowing limit, see the Personal Loan Eligibility calculator, or browse the salary guide to estimate income by profession.
Official sources
The figures and rules on this page are based on the following official references:
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