About Homeownership
Increasing homeownership is a crucial goal of the Kingdom’s Vision 2030 housing programme. Since SRC’s inception, we have helped numerous citizens climb the housing ladder.
We work with our partners that include banks and real estate finance companies to support citizens get affordable home financing that will help the Kingdom realise the Vision 2030 housing programme goal of 70% homeownership.
If you are interested in buying a home, we have best-in-class solutions which we deliver to you through our partners. Our Long-Term Fixed Rate (LTFR) home financing solutions offers one of the lowest possible rate available in the Kingdom to finance a home. With LTFR financing, you can fix your profit rate for the entirety of the financing tenor without the need to worry about changing profit rates.
We provide these financing options through our partner banks and real estate financing companies. Visit our partners page or branch offices today to finance your home today.
Use our proprietary home financing calculator to plan for your home finance and/or refinance. You can compute details about the payment terms and savings using our LTFR rates.
Do you own a home? Did you know that you can refinance your existing home loan with another one that has more favourable terms? We can assist you in providing refinancing solutions that may reduce your monthly instalments and total payment throughout the tenor significantly.
Use our financial calculator to find out how much you can save by refinancing your current home loan.
We offer refinancing solutions through our partner banks and real estate finance companies. To avail our refinancing solutions, please visit one of our partners’ branches or websites.
Buying a home can be a daunting task. However, thanks to the government’s initiatives to support homeownership in the Kingdom, buying a home is now a reality for most Saudis. Start by reviewing properties that match your financial capabilities. This is a prudent way to own a house as well as keep up with your existing financial commitments. Using our financial calculator to find our recommended financing amount can support your goals while allowing you to keep up with your financial commitments. Our partners can provide additional assistance on this.
When getting home finance, you decide whether this is a fixed rate number, that stays at the same rate until the end of the tenor, or whether the loan is at a variable rate, which will vary in accordance with market changes in profit rates.
Lets take a look at this scenario – you have been living in beautiful home for 10 years, paying a monthly rent of SAR 20,000. This amounts to SAR 2.4 million for the duration, and you will continue paying this sum as long as you wish to stay in this home. Your neighbour for the last 10 years, who pays SAR 20,500 a month, confides in you that he in fact has been making monthly payment towards financing his home rather than rent. Over the course of the last 10 years, he has paid SAR 2.46 million, after which he would not need to make any payments.
While it may seem like the renting a home is cheaper than financing, the benefits to owning a home compared to renting are multiple. You gain equity as you continue to pay off your home financing, allowing you to potentially sell the home for a profit or take out another home financing solution. Monthly costs also gradually become smaller and smaller until the home financing is complete – enabling every property buyer’s dream of fully owning their home.
On the other hand, renting can be notoriously volatile. Landlords can increase rent based on the market or can choose to sell their property at very little notice.
At first glance, the monthly payments for 30-year home financing may seem lower than 10, 15 or 20-year home financing. Short-term home financing, however, tends to work out cheaper than long-term home financing. The big advantage is that buyers are not burdened with payments for very long because they are completed quicker.
So while at first a 30-year mortgage may appeal, 15-year fixed-rate home financing may be the smarter option if you can afford to pay more monthly – saving you thousands of Riyals in flat rates over the life of the loan.
It may seem that home finance providers all provide the same offer with a different name on the tin, but rates, fees and terms and conditions can vary from lender to lender. Differences could include some charging upfront fees, and others not. Some have a commission-based approach which gets passed on to your costs, and others structure their payments differently. Lenders can also differ in the extend of services that they offer, with some providing both pre- and post- sale services, and others not.
The terms on pre-sale and post-sale services that lenders offer can also differ.
By researching, you can save money and the more you shop around, the better you will understand the options available to you.
Our research guide
- Get your credit score: Credit scores help lenders determine who qualifies for loans, and the interest rates they'll pay.
- Consider home finance types: What type of loan suits you best?
- Review financing options: Is fixed-rate or variable rate best for you?
- Contact several lenders: They say shrewd borrowers do their homework.
- Add in additional costs: What are they? Do be aware.
- Negotiate: It is always worth trying.
- Get things in writing: It is always worth doing.
- Picking the best rate: flat rates fluctuate, and different lenders may offer deals for certain loan products.