Government Support Programs:
- Supported Financing (Monthly Support):
A government program that helps individuals obtain housing by covering part of the financing profit. The support amount is transferred monthly to the customer, and the ministry bears the profit margin.
- Supported Financing Program (Down Payment):
A program by the Real Estate Development Fund that provides a non-refundable down payment of  150,000 for customers with income less than SAR 10,000, and 100,000 for those with income above 10,000.
- Additional Support Initiative for Ministry of Defense Personnel:
A financing initiative by the Real Estate Development Fund that supports Ministry of Defense personnel with a 160,000 down payment through a benevolent loan. Customers can receive this support in addition to choosing between monthly support or down payment support. |
FAQs
Is there any management fee? The management fee is 1% of the financing amount with cap of 5,000.
Who is eligible for the fixed SAR 400 installment during the construction phase? Customers supported by the Real Estate Development Fund.
Does the financing cover the full value of the property? No, the financing only covers the value of the remaining payments to the real estate developer.
Can a finance be obtained if the customer is a fixed duration residency holder?Yes
Is there a specific nationality to which grants are limited?There is no specific nationality to which grants are limited
How the profit margin is calculated?Here is an example of how the profit margin is calculated:
| Off-plan Financing | | Real Estate value | 900,000 | | Finance amount | 90% of real estate value | | Type of profit margin (Fixed or Variable) | Fixed Rate
| | APR | 6.40% | | Management fees | Management fees is 1% of the Financing Amount with Cap. of SAR 5,000 | Finance duration
| 20 years
| Type of installments
| Funding principal and profit
| Finance Amount
| 810,000.00
| Monthly installment during construction period
| 400
| Monthly installment
| 8,576
| Early settlement
| The value of the remaining asset with an additional 3 months earnings
|
Asset Price
| 1,000,000
| Customer salary
| 12,000
| Amount paid to the real estate developer
| 100,000
| Profit rate type
| Fixed
| APR
| 5.32%
| Tenor
| 20 Years
| Installment type
| Principle and Profit
| Finance amount
| 900,000
| Monthly installment
| 5,659.58
|
Example1: Off Plan beneficiary campaign - Advance Subsidy
(150,000)Asset Price
| 1,000,000
| Downpayment
| 150,000
| Profit rate type
| Fixed
| APR
| 5,33%
| Tenor
| 20 Years
| Installment type
| Principle and Profit
| Finance amount
| 850,000
| Monthly installment
| 5,660
|
Example2: Off Plan - Advance Subsidy
(100,000)Asset Price
| 1,000,000
| Downpayment
| 100,000
| Profit rate type
| Fixed
| APR
| 5,32%
| Tenor
| 20 Years
| Installment type
| Principle and Profit
| Finance amount
| 900,000
| Monthly installment
| 5,993
|
Example3: Off Plan - Monthly Subsidy
Asset Price
| 900,000
| Downpayment
| 90,000
| Profit rate type
| Fixed
| APR
| 5,33%
| Tenor
| 20 Years
| Installment type
| Principle and Profit
| Finance amount
| 810,000
| Monthly installment
| 5,393 |
Example for Residents
Example 1: Finance amount 1 million
1,000,000
| Asset Price | 300,000
| Downpayment (30% of the asset price) | | Fixed | Profit rate type | | 6.25% | APR | | 25 Years | Tenor | | Principle and Profit | Installment type | 700,000
| Finance amount | 5,040.00
| Monthly installment
|
Example 2: Finance amount800,000
800,000
| Asset Price | 240,000
| Downpayment (30% of the asset price) | | Fixed | Profit rate type | | 6.25% | APR | | 25 Years | Tenor | | Principle and Profit | Installment type | 560,000
| Finance amount | 4,032.00
| Monthly installment
|
Example 3: Finance amount2 million2,000,000 | Asset Price | 600,000
| Downpayment (30% of the asset price) | Fixed | Profit rate type | 6.25% | APR | 25 Years | Tenor | Principle and Profit | Installment type | 1,400,000
| Finance amount | 10,080.00
| Monthly installment
|
Risk Disclaimer- Before deciding to obtain real estate financing, it is advisable to review your credit report to understand your current financial obligations. Reviewing your credit report helps you understand the extent of your need for financing, and how the financing will affect your financial situation currently or in the long term.
- The second party (the client) does not have the right to request withdrawal from the contract or retract its implementation if the shares have been deposited into their investment portfolio with the trading company, except in the event of the contract's termination (rescission).
- It is important for the client to ensure the timely payment of dues, as the client's credit history will be negatively affected in the event of default or delayed payment.
*Terms and conditions apply The annual percentage rate varies based on the amount and maturity period and Subjected to the customer's credit history |
