Land Purchase

Purchase of land:

Is a product based on the concept of Murabaha, where SAB purchases the land and sells / leases it to the customer, whereby the customer pays part of the selling price in advance while the remaining balance is paid to SAB by monthly installments over the financing period.

Murabaha Home finance

The bank will own the property and then sells it to the customer. The customer pays part of the price as a down payment while the remaining payments are paid to SAB by monthly installments over the financing period.


Early Payment Fees Monthly Installment3,030.00 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.

Characteristics of the Murabaha Home finance:

  • Fixed installments during the finance period
  • Fixed profits during the finance period
  • Transferring the ownership of the property to the customer and mortgaging it to the bank

Required Documents

  • Salary introduction letter(Pay Slip Letter)
  • Salary Transfer Letter
  • Identification card
  • Mortgage application form
  • The sale contract
  • Medical questionnaire
  • Full Medical questionnaire if the amount above 3,000,000.

Product specifications and features

  • Approved by the Shariah Committee as Murabaha.
  • Easy installments that fit the customer’s obligations
  • Purchase of existing indebtedness.
  • Maximum financing amount SAR 3 million, and no less than SAR150,000.
  • Exemption from paying the remaining of the financing amount in the event of death or total disability.
  • Administrative fees 1% of the value of the financing or SAR5000, whichever is lower, excluding VAT
  • Minimum salary starting from SAR 3,500.
  • Advance payment of at least 10% of the value of the land.
  • Financing period of up to 20 years and not less than two years.
  • Home financing may be obtained for a period of not less than two years and not more than 30 years
  • Fixed installments and customary profits throughout the financing period for Murabaha financing applications
  • Step up payments as per customer obligations. Allow customer to obtain 2 in 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..

Steps to get the product:

  • Apply for home finance
  • Valuation of customer's financial capacity
  • Initial approval for financing
  • Provide the required documents
  • Real estate evaluation and study of the application
  • Final approval of the financing request