Buying or Renting?
If you're seeking more knowledge before taking a step to buy a home, we put together some useful information about the aspects of home finance. Click on the topics below to explore more.
1. Does home finance meet your expectations?
Explore how much you can borrow
2. Buying on installments or renting?
Explore why you should buy rather than rent
3. Is home finance complicated?
Explore how you can buy a home in 3 easy steps
You can reach us in the following ways:
Telephone: Toll Free 800 124 1222
Branch: Visit any one of our branches
Click here to fill out the online Home Finance application form.
1. Does home finance meet your expectations?
Typically, the finance you can borrow to buy a home is around 46 times your monthly salary when you go for a 15 Year Plan and around 62 times for a 25 Year Plan. The tables below illustrate some examples. You can also use our Finance Calculator to know how much you can borrow
15 Years Plan
| Finance Amount |
Monthly Salary |
| 230,000 |
5,000 |
| 345,000 |
7,500 |
| 460,000 |
10,000 |
| 575,000 |
12,500 |
| 700,000 |
15,000 |
25 Years Plan
| Finance Amount |
Monthly Salary |
| 2310,000 |
5,000 |
| 465,000 |
7,500 |
| 620,000 |
10,000 |
| 775,000 |
12,500 |
| 930,000 |
15,000 |
Remarks:
- The numbers are in Saudi Riyal and they are indicative. It is assumed that the applicant has no committed installments to other parties/banks
- The 15 Year plan is applicable to land, villa/apartment purchase and the 25 Year plan is applicable to villa/apartment purchase only
You can reach us in the following ways:
Telephone: Toll Free 800 124 1222
Branch: Visit any one of our branches
Click here to fill out the online Home Finance application form.
2. Buying on installments or renting?
A simple comparison between renting and buying, tells us that you can buy a home for SR 500,000 simply by paying SR 780 per month more than you rent for a similar place.
How is it possible?
The monthly installment for home finance over 15 years (home value is SR 500,000) is SR 4,860 while the average monthly rent for the same home and over the same period is SR 4,080. Check the the table below for the details:
Difference Between Renting or Buying Over 15 Years
(Home Price: SR 500,000) |
| Monthly Rent |
SR 4,080 |
| Monthly Installment to buy (Through Home Finance) |
SR 4,860 |
| Monthly Difference Between Renting and Buying |
SR 780 |
* The rental yield is 8% according to general statistics, and the cost of renting increases by an average of 2.83% every year
As when comparing renting with buying on installments for 25 years, the saving becomes considerable from the beginning. With a 10% down payment (SR 50,000), the monthly installment for home buying would be SR 3,280 while the average monthly rent would be SR 7,900. The option of the 25 Year plan brings a lot of saving, and it is suitable for people choosing to buy a home at the early stage of life.
Click Here to get a general idea. You can also use our Finance Calculator to know how much you can borrow.
You can reach us in the following ways:
Telephone: Toll Free 800 124 1222
Branch: Visit any one of our branches
Click here to fill out the online Home Finance application form.
3. Is home finance complicated?
There are 3 easy steps that you can follow in order, which saves a lot of effort and time.
Step 1: Know how much you can borrow
You can use our Finance Calculator to know how much you can borrow.
Step 2: Search for the property
Since each individual has his own needs and personal taste, there isn’t any specific guide to follow. But before you take a final decision, it is recommended that you seek the advice of an architect or the advice of an expert who can spot the quality of the construction and the finishing. In the case of buying through home finance, the bank always evaluates the property through specialized evaluation companies to make sure that the property is value for money. This is one of the key features of home finance.
Click here to find properties available through finance
Step 3: Apply for home finance
- Open an Account with us
- Have your salary transferred to your account with us
- Complete the application form and submit the required property documents
- Sign the contract upon our final approval
Required Documents for Account Opening
- A copy of the National ID and family card (if available), along with originals for verification
- An introduction letter stamped by the employer (stamped by the Chamber of Commerce for the private sector) stating the years of service, the salary, the job title, and allowances (if any)
Required Property Documents:
- Copy of the title deed (from both sides)
- A copy of the Building Permit (not requested for land purchase)
- A Divisions Report or “Al Tharaa” agreement (For Duplex villas or apartments without title deeds)
- A filled in quotation from the owner or the real estate office
- Customer acknowledgement that he inspected the property
- Location map of the property
For home building: in addition to the above documents, you must provide the construction plans and tables for the building or the completion of the property
You can reach us in the following ways:
Telephone: Toll Free 800 124 1222
Branch: Visit any one of our branches
Click here to fill out the online Home Finance application form.
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