What is the minimum down payment for a home mortgage in Saudi Arabia?

This answer was reviewed against official sources on 2026-10-05

Short answer

The minimum down payment on a citizen’s first home is 10% of its value, because the Saudi Central Bank (SAMA) allows financing of up to 90%. For a second or later home, financing is capped at 70% by banks and 85% by real estate finance companies, so the down payment is at least 30% or 15%. These are maximum financing limits, so a lender may ask for more, and the Real Estate Development Fund (REDF) offers eligible housing-support beneficiaries options that support or reduce the down payment.

Where the limits come from

Home finance is governed by the Real Estate Finance Law, Royal Decree M/50 dated 13/8/1433H. Article 11 of its Implementing Regulation bars lenders from financing more than 70% of the dwelling’s value in any form of finance, and lets SAMA change the ratio according to market conditions.

SAMA then raised the cap to 85% for real estate finance companies in March 2016, to 85% for banks on citizens’ first homes in January 2017, and to 90% for citizens’ first homes only in January 2018. The limits are now:

A citizen’s first home: financing up to 90%, so a down payment of at least 10%. The circulars state that the 90% limit is for citizens’ first homes only.
Second and later homes, for all borrowers: financing up to 70% from banks (30% down) and up to 85% from real estate finance companies (15% down).

Why a lender may ask for more

These ratios are ceilings that may not be exceeded, not an entitlement. SAMA’s circulars require lenders to verify a borrower’s ability to repay before granting any finance, taking into account their financial and credit obligations, and the regulation requires lenders to review the borrower’s credit record with their consent. If the lender decides the income cannot support the instalment, it may lend less, which raises the down payment.

Down payment support for housing-support beneficiaries

Housing support is limited to citizens: the Implementing Regulation for Housing Support requires the applicant to hold Saudi nationality. REDF offers eligible beneficiaries, through approved lenders, options including:

Applications start with registration in the Real Estate Advisor (المستشار العقاري) service, as REDF’s pages explain, and the terms published at the time of application apply.

Down Payment Support Package: an immediate, non-refundable fixed amount of SAR 100,000 or SAR 150,000 based on net income under the support matrix, for ready or under-construction units.
Monthly support: an alternative to the immediate support that lowers the instalment throughout repayment, worth up to SAR 324,000 in total depending on net salary.
Down Payment Reduction: from 10% to 5% on a first home, up to SAR 40,000, provided the unit costs SAR 800,000 or less.

Worked example for a SAR 800,000 home

These are the minimum down payments only, before other purchase costs:

A citizen buying a first home: at least SAR 80,000, or SAR 40,000 with the Down Payment Reduction.
A second home financed by a bank: at least SAR 240,000.
A second home financed by a real estate finance company: at least SAR 120,000.

Calculate it: Real Estate Transaction Tax (RETT) Calculator5% tax on property sales, and what the state bears for a first home.

Follow-up questions

Is the real estate transaction tax part of the down payment?

No. It is a separate 5% tax that the seller is legally liable for, although the parties may agree that the buyer pays, and it is not charged on the financing cost. The State bears the tax for an eligible citizen’s first home on up to the first SAR 1,000,000 of the price.

Is the limit different for Murabaha and Ijara?

No. Article 11 of the regulation applies the cap to “any form of finance”, so the same limits apply across home finance structures.

Can non-Saudis get housing support?

No. The Implementing Regulation for Housing Support requires the applicant to be a Saudi national from the application until the support contract is signed. SAMA’s circulars also limit the 90% financing cap to citizens’ first homes.

Official sources

General information for guidance, not legal advice; the governing regulations and official bodies are the final reference.

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