Best Banks for Home Loans in Saudi Arabia for Non-Residents

Saudi Arabia has opened its real estate market to foreign investors, including non-residents who are interested in purchasing homes. While real estate financing options are more accessible to residents, a few Saudi banks offer specialized mortgage products that make home ownership possible for non-residents. In this guide, we’ll discuss the top banks in Saudi Arabia that offer home loans to non-residents, their requirements, loan terms, and some tips for securing a mortgage as a foreign buyer in the Kingdom.

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1. Key Considerations for Non-Resident Home Loans in Saudi Arabia

Non-resident buyers interested in home loans in Saudi Arabia should be aware of a few important factors:

• Eligibility Criteria: Some banks may restrict mortgage options for non-residents or have stricter requirements, including higher down payments and proof of substantial income.
• Down Payment: Non-residents are generally required to provide a larger down payment—usually between 30-40% of the property value.
• Property Location: Saudi regulations may restrict foreign buyers to designated areas or projects, such as specific regions in Riyadh, Jeddah, or other major cities.
• Documentation: Non-residents are required to provide detailed documentation, including proof of income, valid passport copies, a residency permit (if applicable), and a credit history from their home country.
• Islamic Financing: Mortgages in Saudi Arabia are Sharia-compliant, meaning they operate under Islamic finance principles. Instead of traditional interest-based loans, home loans are structured around Ijarah (lease-to-own) or Murabaha (cost-plus financing).

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2. Top Banks Offering Home Loans for Non-Residents in Saudi Arabia

Below are some of the best banks in Saudi Arabia offering home loan options to non-residents, with a focus on flexibility, competitive rates, and accessibility:

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1. Al Rajhi Bank

• Overview: Al Rajhi Bank is one of the largest Islamic banks globally and offers Sharia-compliant home financing options designed to meet the needs of local and foreign investors. They have customized solutions for non-residents investing in Saudi property, though eligibility may vary.
• Financing Model: Ijarah (lease-to-own) and Murabaha (cost-plus financing).
• Key Features:
  • Flexible repayment terms up to 30 years.
  • High loan-to-value ratio, typically around 60-70% for non-residents.
  • Special financing packages available for properties in select areas and new developments.
• Requirements:
  • Valid passport and proof of income.
  • Down payment of at least 30%.
  • Bank account setup with Al Rajhi for loan servicing.

Best For: Non-residents seeking a long repayment term and flexible financing models.

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2. SABB (Saudi British Bank)

• Overview: SABB provides home financing tailored for non-resident buyers, supported by its affiliation with the global HSBC network. The bank offers competitive rates and flexible repayment terms with a strong customer support system for non-resident buyers.
• Financing Model: Sharia-compliant Murabaha financing, providing transparency and fixed costs over the term of the loan.
• Key Features:
  • Up to 25-year repayment term.
  • Competitive profit rates with options for fixed or variable payments.
  • Specialized support for overseas clients through the HSBC network.
• Requirements:
  • Proof of employment or stable income, usually with a minimum salary requirement.
  • A down payment ranging from 30-40% of the property value.
  • Full documentation of income and assets, including credit history.

Best For: Non-residents seeking competitive rates and a structured Murabaha financing option with global support.

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3. Riyad Bank

• Overview: Riyad Bank offers Sharia-compliant home financing for non-resident buyers who are interested in investing in Saudi real estate. Their home loan options cater to both residents and non-residents, with a focus on affordability and streamlined application processes.
• Financing Model: Murabaha, with fixed profit rates and monthly payments that remain consistent over the loan’s duration.
• Key Features:
  • Loan terms up to 20 years.
  • Attractive profit rates, with competitive rates for shorter loan terms.
  • Financing for a wide range of property types, including apartments, villas, and commercial properties.
• Requirements:
  • Proof of income and assets, usually from a stable source such as employment or business ownership.
  • Minimum down payment of 30%.
  • Background check and documentation, including credit history from the applicant’s home country.

Best For: Non-residents looking for a straightforward Murabaha financing plan with affordable rates.

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4. Bank AlJazira

• Overview: Bank AlJazira offers various home finance options, focusing on Sharia-compliant structures tailored for local and foreign investors. Their mortgage products are designed for residential and commercial properties in major Saudi cities.
• Financing Model: Ijarah (lease-to-own) with options for structured, variable, or fixed payments.
• Key Features:
  • Loan terms up to 25 years.
  • High LTV ratio for eligible non-residents.
  • Flexible options to restructure payments if necessary.
• Requirements:
  • Employment or income verification with sufficient monthly income.
  • Minimum down payment of 35% for non-residents.
  • Additional insurance or collateral requirements may apply.

Best For: Investors who prefer Ijarah-based financing with the option to adjust payments.

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5. Arab National Bank (ANB)

Best For: Non-residents looking for both Murabaha and Ijarah options and a wide choice of properties in major Saudi cities.

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3. Applying for a Non-Resident Home Loan in Saudi Arabia: Tips and Considerations

Applying for a home loan as a non-resident in Saudi Arabia requires careful preparation. Here are some tips to enhance your chances of approval:

• Prepare Documentation Thoroughly: Make sure to gather all required documents well in advance, including proof of income, bank statements, credit history from your home country, and identification.
• Secure a Higher Down Payment: Non-residents typically face higher down payment requirements (often 30-40%), so plan to have sufficient savings to cover this.
• Check Eligibility for Property Types: Some banks restrict financing to specific property types or locations, so confirm with your bank whether your chosen property qualifies for financing.
• Consider Exchange Rates and Profit Rate Variability: If your income is in a foreign currency, take into account currency exchange rates, which can impact your repayment. Additionally, choose a fixed profit rate if you prefer consistent payments.
• Leverage Local Support: Banks with international connections or services catering to non-residents (such as SABB with HSBC) can provide additional resources to make the mortgage process smoother.

Purchasing property in Saudi Arabia as a non-resident is a significant investment opportunity, and while the financing process is more complex for foreign buyers, several Saudi banks provide robust options tailored to their needs. Al Rajhi Bank, SABB, Riyad Bank, Bank AlJazira, and Arab National Bank each offer unique home loan products that align with Sharia-compliant principles and cater to non-resident investors. By understanding each bank’s financing models, repayment terms, and requirements, non-residents can navigate the Saudi mortgage market more confidently and make informed decisions about their real estate investments.