FAQs for Investment Property Finance

• Is the finance rate fixed?
• How much can I borrow and what is the installment?
• if a down payment is required, when do I have to pay it?
• What is the maximum allowed age for the finance?
• How long does the finance process take?
• Is additional income taken into consideration in the finance?
• If I already have a personal finance, can I have the investment property finance?
• Is the property subject to your appraisal & who makes the appraisal?
• Is the property registered under my name?
• Do I receive any income from the annual income (annual rental) of the real estate property during the installment period?
• The income (rental) of the real estate property changes during the installment period, moving either up or down. Does this change affect the installment amount?
• Who is responsible for the maintenance of the property during the installment period?

Is the finance rate fixed?

Yes, it is.

How much can I borrow and what is the 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 have to pay it?

You should deposit the down payment in your current account with us when you submit your application. The down payment is a requirement for approval and is it deducted from your account when your finance is approved and you sign the contract.

What is the maximum allowed age for the finance?

Your age is not related to the finance unless you need to add your salary to the finance. In this case, 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 sign the contract is 10 days.

Is additional income taken into consideration in the finance?

Yes, there are 2 additional incomes that we consider in the finance. The first one is your salary, and the second one is the rental from another property that you own, or even both your salary and the rental. For the salary option, employment period must be at least 6 months with current employer, who must be an approved party by us. Also, the monthly salary must be of SR 2,000 and above. You can easily find out your finance with our instant online calculator. Click here to find out.

If I already have a personal finance, can I have the investment property finance?

Yes, you can. The installments are paid from the rent of the investment property. However, you need to have a clean record at the Credit Bureau, SIMA, which means paying your personal finance on time.

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. It is transferred to you once you settle all your installments.

Do I receive any income from the annual income (annual rental) of the real estate property during the installment period?

You may receive residual rental income after deducting the installments due or any other collection charges if any. The table below details the customer share after deduction of installments/ dues to the bank.

Real Estate Age	Your share from rental income
Less than 5 years	20%
More than 5 years and up to 10 years	25%
More than 10 years and up to 20 years	30%

The income (rental) of the real estate property changes during the installment period, moving either up or down. Does this change affect the installment amount?

The installment is fixed and it is calculated in the beginning of the contract. If the change is down, you have to compensate the shortfall, and if the change is up you receive the gain.

Who is responsible for the maintenance of the property during the installment period?

You are responsible for the maintenance.