FAQs for Home Finance Program - 20 Year Plan

Is the finance rate fixed for the 20 Year Plan?
Yes, it is fixed during the whole finance period.
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 price of the home 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. 
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 3,500 and above.
In the case of joint applicants, is the installment deducted from both applicants or from the main one?
Yes, you can apply to a second finance. However, it depends on how much you can borrow and how much will be your total monthly installments. The table below gives some indication.
Salary of Main Applicant SR 10,000
Salary of joint Applicant SR 4,000
Total Salaries SR 14,000
Monthly Installment SR 8,300
(the monthly installment is 60% 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 a 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 Sharia principles.
If I already have a finance from Al Rajhi Bank or another 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 60% 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 6,000. If your existing monthly installment is SR 2,500, then you can still pay another installment of SR 3,500 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 for the first time in your account with us.
Can I have more than one finance to buy a second home?
Yes, as long as the monthly installments for both finances do not exceed 60% of your monthly income.
Can I do an early settlement of my finance?
Yes, you can. 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 property subject to your appraisal & who makes the appraisal?
Yes. The property is appraised by one or two specialized real estate evaluation companies nominated by us to ensure that the property is value for price.
Is the property registered under my name?
The property is registered under the name of Al-Rajhi Development Company. The ownership is transferred to you once you settle all your installments.
Who is responsible for the maintenance of the property?
You are responsible for all kind of maintenance.
Can I do additional modifications on the property?
Yes, you can. Examples are building a room for the driver, or an additional room on the house roof, or merging 2 rooms in one. For such modifications you do not need our approval. However, you need to make sure whether you need an approval from the municipality or whether the modifications are not against the law.
Can I offer the property for rent?
Yes, you can offer the property for rent without conditions. However, you are still responsible for the maintenance of the property and keeping it in a good shape.
Can I sell the property during the finance period, and how is it done?
Yes, you can.