Home Equity Subsidized by REDF

Subsidized Mortgage:

It is a product based on the concept of Tawarruq which 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. So, that the customer gets the amount of the mortgage then the land or real estate 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
  • 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
  • Choosing the desired property whether Villa / Duplex / Apartment
  • No down payment for financing
  • Property age can go until 35 years at the finance end, and 40 years if the land value is 40% of the total property value
  • Financing can be obtained for a period of not less than two years and not more than 25 years
  • Fixed installments and generally accepted profits throughout financing period for Tawarruq financing requests
  • 70% of 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