Ready units subsidized by REDF

Ready units subsidized by REDF:

A product to finance ready-made (villa, apartment, building) or one of Ministry of Housing projects subsidized up to 500,000 SR shariah compliant and provided to REDF and Ministry of Housing beneficiaries.

It is a Murabaha based product at SABB, where the bank purchases the property at the customer’s request and lease it to the customer by monthly installments until the amount is fully paid.

Murabaha Home finance

The bank purchases the property and sales it to the customer. The customer pays a part of the purchase price in advance while the balance is payable to SAB in monthly instalments over the finance period.

Example

Murabaha
Early Payment 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
ID Card
Home finance request form
Purchase contract
Full Medical questionnaire if the amount above 3,000,000.

Product specifications and features:

Approved by Sharia Board as Murabaha
Advance payment
Flexible increasing installments according to the customer’s obligations
Purchase outstanding indebtedness
Financing amount up to SAR 7 Million and no less SAR150,000.
Administrative fees 1% of the value of the financing or SAR5000, whichever is lower, excluding VAT.
A waiver on payment of finance amount remained in case of death or permanent disability –god forbid-.
Minimum Salary starting from SAR3500.
Choosing the desired property whether (Villa, Duplex, Apartment)
An advance payment 10% for first residence owners and 30% for others
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.
Finance can be received for up to 25 years and no less than two years
Fixed installments and generally accepted profits during the financing period for Murabhah finance requests.
90% of first property value can be financed and 70% of else
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.