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FAQs for Building a Home Program

Is the finance rate fixed for the 20 Year Plan?
Yes, it is fixed during the whole finance period.
How much can I borrow and what is my monthly installment?
You can easily find out how with our instant online calculator. Click here to find out.
If a down payment is required, when do I pay it?
A down payment is generally not required, but if you want to make a down payment or if the building cost (or cost of building + land price) is higher than what you can borrow, then you need to deposit the down payment in your current account with us when you submit your application (after initial approval). The down payment is deducted from your account when you sign the contract
What is the maximum allowed age for the finance?
The finance period + your age should not exceed your retirement age. You can find out the maximum allowed period with our instant online calculator. Click here to find out.
How long does the finance process take?
The whole period from the day you apply to the day you receive the home may take up 10 working days.
Is additional income taken into consideration in the finance?
50% of the additional income is considered on the condition that the monthly installments do not exceed the salary transferred to bank. Also the additional income should be either from an additional job in the public or private sector or from rental income.
Note: The additional income is subject to final approval.
Is it possible to have a joint applicant, other than my husband/wife?
yes, it is possible and the same conditions apply:
  • He must be a Saudi national.
  • Not less than 6 months with current employer, which must be approved by us
  • A monthly income of SR 2,000 and above
In the case of joint applicants, is the installment deducted from both applicants or from the main one?
The installment is deducted from the main applicant. The example below explains the deduction in details:
Salary of Main Applicant SR 10,000
Salary of joint Applicant SR 4,000
Total Salaries SR 14,000
Monthly Installment SR 6,300
(the monthly installment is 45% of the total salaries)

The monthly installment should not exceed the salary of the main applicant. The maximum monthly installment is the salary of the main applicant that is transferred to us.

Can the joint applicant have another finance, after he committed with the main applicant to home finance?
Yes, he can receive a finance from us (personal or car or home finance) or from another bank as long as his existing installment as a joint-applicant + the new finance installment don’t exceed his credit limit.
If I have a finance from another bank, do you buy it?
No we don’t, since it is against the Shariah principles.
If I already have a finance from Al Rajhi Bank, can I have a home finance?
Yes, you can, as long as the monthly installments that you pay for both finances do not exceed 45% of you salary. Example: if your salary is SR 10,000, then both monthly installments (the existing one and the home finance one) should not exceed SR 4,500. If your existing monthly installment is SR 2,500, then you can still pay another installment of SR 2,000 for home finance.
If I have a credit card, does it have a credit effect on home finance, such as the amount I can borrow or my monthly installments?
No, it doesn’t, as long as you are paying your credit card dues on time.
If my salary is transferred to another bank, but I am on the way to transfer it to Al Rajhi Bank, when does my application for home finance get through?
We place your application for processing, immediately after your salary is deposited in your account with us
Can I do an early settlement of my finance?
Yes, you can. If you do the settlement during the first year of your finance, you have to pay us the profits of the first year. And if you do early settlement after the first year, you pay us the profits of the month during which you settle and the profits of the 3 following months.
Remark: The total profit of the finance is not divided equally over the monthly installments. The profits in the first few years are higher than the ones in the last few years
Is the building cost and the land are subject to your appraisal & who makes the appraisal?
Yes. The building cost and the land are appraised by one or two specialized companies nominated by us to ensure that the cost of construction and the price of the land are appropriate.
What type of home building does the finance cover?
The finance covers the following areas:
  • Building a home on a piece of land that you own
  • Building a home on a piece of land that we buy it for you
  • Completing the construction of a home that you own
Can I choose a specific architect or construction firm to build my home?
You have the freedom of choosing the architect or the construction company, provided both are approved by the Municipality and Rural Secretariat of the Chamber of Commerce. An agreement is to be signed with the contractor and/or the architect. In case the contractor or architect is not bank-approved, you can notify us to get them approved.
If there are other costs aligned to activities such as: re engineering design, tables of quantities and pricing of the house in addition to the customer's technical specifications: Are these expenses covered by you or me?
All of these requirements are at your expense.
Who undertakes the power and water connection after construction; you or me?
You and the designing engineer should take on that responsibility.
Who supervises construction details, such as finishing, construction materials, and equipment?
You are responsible for choosing every detail in the construction.
Will I be exempted from providing construction permits if I own the plot of land intended for construction?
You are responsible for processing the building permit. The permit, inclusive of architect and constructor assessments, is to be obtained by you.
Are there specific schedules to be followed in the construction of the property?
The duration of construction is determined by the supervising engineer and the contractor. Construction varies from 8 - 24 months, and this is established according to the design.
If I don’t own a plot of land, does this include both the plot of land and the construction of the home?
Yes, we can finance you for both, provided that the cost of both the land and the construction are within your borrowing limit.

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