How much down payment do you need?
| Saudi Arabia | UAE (home up to AED 5m) | |
|---|---|---|
| Citizen, first home | 10% | 15% (25% above AED 5m) |
| Resident (expat), first home | About 30% (bank practice) | 20% (30% above AED 5m) |
| Second home | 15% (30% for a third) | 35% citizens, 40% expats |
| Longest term | Usually up to 30 years | 25 years |
| All monthly debts | Up to 55% of salary (65% above SAR 15,000) | Up to 50% of income |
Costs when you buy
- Saudi Arabia: real estate transaction tax of 5% of the price (the state pays it for a citizen's first home up to SAR 1 million), and a bank admin fee of at most 1% of the finance or SAR 5,000.
- Dubai: Dubai Land Department fee of 4% of the price plus AED 580, trustee office fee, mortgage registration of 0.25% of the loan, and a valuation of about AED 3,000. Other emirates have their own fees.
Flat rate or reducing rate?
Home finance is normally priced on a reducing balance: you pay profit only on what you still owe. If a bank quotes a flat rate, profit is counted on the full amount for the whole term, so the real yearly cost (APR) is close to double. Choose Flat rate above to see the APR. Compare offers by APR. For car finance, see our car finance calculator.
Can expats buy in Saudi Arabia?
Yes. Under the non-Saudi property ownership law in force in 2026, residents can buy in designated areas, and several banks now finance them, often for Premium Residency holders or above a minimum salary.
Frequently asked questions
How much salary do I need for a home loan?
Your home payment plus your other monthly debts must stay within the limit: 55% of salary in Saudi Arabia for salaries up to SAR 15,000 (65% above), and 50% in the UAE. The calculator shows the most you can pay each month.
Is home finance halal?
Islamic banks offer murabaha (the bank buys the home and sells it to you at a profit) and ijara (lease to own). The payment is calculated the same way; ask the bank for its Sharia board's approval.
What does 'APR' mean?
The annual percentage rate is the real yearly cost of the finance, including fees. Banks in Saudi Arabia must show it, so use it to compare offers.
Can I pay the loan off early?
Yes. In the UAE the early-settlement fee is at most 1% of what you still owe or AED 10,000, whichever is lower. In Saudi Arabia the bank can only charge the cost it actually incurs, within SAMA limits.
Last reviewed: October 2026.
This page was translated from Arabic. If something is unclear or wrong, please tell us.