Ready Units Product REDF Down Payment

A product to finance ready-made (villa, apartment, building) or one of Ministry of Housing subsidized projects, where the new product aims to facilitate home ownership for the beneficiary by subsidizing advance payment to fully/partially with a value of 100/150 thousand riyals, compatible with the provisions of Islamic Sharia and provided to the beneficiaries of REDF and the Ministry of Housing. The product is a Murabaha based at SAB, 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 concept:

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.


Characteristics of the Murabaha concept for home loan:

  • Fixed installments throughout the financing period
  • Fixed and agreed upon profits throughout the financing period
  • Transferring the ownership of the property directly to the customer and mortgaging it to the bank.


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 4,000,000.


Product specifications and features:

  • Approved by the Sharia Board as Murabaha form.
  • Facilitating home ownership by providing advance payment of either 100/150 thousand riyals.
  • Cover the advance payment of the finance fully/partially
  • Financing period can be obtained for up to 25 years
  • Exemption from paying the remainder of financing amount in case of death or permanent disability (God forbid)
  • Choosing the desired property whether (Villa, Duplex, Apartment)
  • Fixed installments and customary profits throughout the financing period for Murabaha financing applications
  • 90% of first property value can be financed
  • Step up payments as per customer obligations. Allow customer to obtain 2in1 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.
  • Possibility to finance customers from age 21 until 77.
  • Ready units subsidized by REDF has a financing amount of up to 5 million Saudi riyals, and no less than 150 thousand Saudi riyals


Approval conditions:

  • The customer should be qualified for the REDF program, registered in the real estate advisor, and choose the down payment support package.
  • Subsidy coverage 100/150 thousand as advance payment only.
  • The customer may benefit from the REDF home finance program once.
  • If the advanced payment is above 100/150 thousand riyals, the customer will pay the remaining amount.
  • The customer has to be eligible to receive the financing amount according to the policies, terms and conditions of the home financing.
  • Administrative fee 1% of the value of the financing or SAR5000, whichever is lower, excluding VAT.
  • Minimum salary starting from SAR3,000


Application approval steps:

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