Home Equity

Home Equity:

Is a product based on the concept of tawarruq, whereby the customer obtains the amount of mortgage of the property, and the land or property is mortgaged as a guarantee until the full amount is paid.

Tawarruq Concept:

SAB owns metal purchased from the global market and sells them to customers at an agreed upon fixed profit rate. Shortly after purchasing metal from SABB, the customer can, by issuing a power of attorney to SABB, sell metal at the prevailing prices and then obtain the 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.

Tawarruq Concept features:

  • Fixed installments during the finance period
  • Fixed profits during the finance period
  • Mortgage the property to the bank

Required Documents

  • Salary Introduction Letter (Pay Slip Letter)
  • Salary Transfer Letter
  • ID Card
  • Home finance request form
  • Full Medical questionnaire if the amount above 3,000,000

Product specifications and features

  • Approved by Sharia Board under Tawarruq form.
  • A waiver on payment of finance amount remained in case of death or permanent disability –god forbid-.
  • Financing amount of 5 Million SR and no less than 150,000 SR
  • Administrative fee 1% of the value of the financing or SAR5000, whichever is lower, excluding VAT
  • Minimum Salary starting from 3500 SR.
  • There is no advance payment to receive the finance.
  • 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.
  • Fixed installments and generally accepted profits during the financing period for Tawarruq finance requests.
  • 70% of property value can be financed
  • 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.

Steps to get the product:

  • Apply for Home finance loan
  • Valuation of the customer‘s financial capacity
  • Initial approval for financing
  • Real estate evaluation and study of the application
  • Final approval for the financing request.