Land and Financing Product Subsidized by REDF

Land and Financing Product Subsidized by Real Estate Development Fund (REDF):

It is a self-construction finance based on the concept of Tawarruq for those who have land granted through the Ministry of Housing within plans and projects, and granting the Ministry of Housing to build his house according to his desire, which is through Home Finance to build housing unit on the granted land in payments subsidized profits for up to 500,000 SAR in compliance with the provisions of Sharia, the beneficiaries are provided by the Real Estate Development Fund (REDF) and the Ministry of Housing which the land was mortgaged as a guarantee until the full amount is paid.

Product concept:

SAB owns metal purchased from the global market and sells them to customers as agreed upon fixed profit rate, soon after purchasing metals from SABB, by issuing an official power of attorney for SABB, the customer can sell metal at the prevailing prices then obtain financing amount, and the land is mortgaged as a guarantee until the full amount is paid.


Early payments fees Monthly Installment* Payment Method Financing Period APR* Variable or fixed profit margin Max Financing Amount Property Value
Profits for the next three months   3,030.00 Principal amount plus profit margin 25 Years  6.78% Fixed  90%  500,000
*The annual percentage rate and the monthly installment may change based on the value of the financing, the financing period, and the profit margin currently approved by the bank

Rates/prices presented are examples and they may vary depending on different factors such as the customer’s credit history and worthiness.

Required Documents:

  • Salary Introduction Letter(Pay Slip Letter)
  • Salary Transfer Letter
  • Copy of Identification card
  • Home Finance application form
  • Valid Building Construction License
  • Medical questionnaire
  • Full Medical questionnaire if the amount above 3,000,000

Product specifications and features:

  • Approved by Shariah Board as Tawarruq form
  • A financing amount up to 5 million SAR and not less than 150,000 SAR
  • Administrative fees 1% of the value of financing or 5000 SR whichever is lower excluding VAT
  • Minimum basic salary starting from 3,500 SAR
  • No down payment
  • Finance period up to 25 years
  • Properties can be financed until the age of 40 at the end of financing.
  • Fixed installments and generally accepted profits throughout financing period
  • Up to 90% of the property value can be financed
  • Exemption from paying the remainder of financing amount in case of death or permanent disability (God forbid)
  • Step up payments as per customer obligations. Allow customer to obtain 2in 1 products.
  • Step down payments on retirement- the customer will have a reduced installment after retirement in accordance with the pension
  • Combo gives the customer ability to obtain personal and home finance in case the client approaches retirement age.

Product obtaining steps:

  • Obtain approval for housing support from Real Estate Development Fund (REDF) and the Ministry of Housing
  • Apply for a Home Finance
  • Valuation of customer's financial capacity
  • Initial financing approval
  • Real estate valuation plans and study the request
  • Final approval of the financing request