Al Rajhi Bank is one of the oldest and largest banks in the world, and it is one of the most important banks that is keen to follow the teachings of Islamic Sharia in all financial transactions and financing. This is one of the most important pieces of information about Al Rajhi Bank.
The bank offers several financing programs, such as car finance, personal finance, and property finance. In this article, we will talk in detail about everything related to obtaining Al Rajhi property financing.
What are the conditions for obtaining a real estate loan from Al Rajhi Bank?
If you are inquiring about mortgage terms in Saudi Arabia or Al Rajhi Bank-supported mortgage financing terms, Al Rajhi Bank assists citizens in acquiring their own properties through multiple programmes with financing terms of up to 25 years, and the financing is compliant with Islamic Sharia law.
To obtain an Al Rajhi mortgage loan, there are several real estate financing programmes, each with its own terms and conditions for real estate financing supported by Al Rajhi Bank. One of the most prominent of these is the purchase of a ready-built residential unit, which is one of Al Rajhi’s real estate financing programmes and is considered an instalment sale that enables the customer to purchase a residential unit, either from one of the Ministry of Housing’s projects or a ready-built unit from the market. This product is available to customers of the Real Estate Development Fund and to customers of the bank.
Al Rajhi Bank’s real estate financing conditions are as follows:
- A letter transferring the salary to Al Rajhi Bank (if the salary is transferred)
- A copy of the work certificate
- A copy of the owner’s national ID
- A clear copy of the deed
- Filling out a declaration and disclosure of the customer’s personal obligations.
- National ID card.
- Salary statement from the employer.
- For Saudis and residents.
- A clear sketch of the property location.
- Minimum age of 18 years.
- Minimum service period of 3 months.
- Monthly salary starting from 7,000 for customers with salary transfer and 10,000 for customers without salary transfer.
- Fill out the ‘Mortgage Application’ form.
- Property price offer.
These are the terms and conditions governing Al Rajhi mortgage loans for the purchase of residential units. There are also many other Al Rajhi mortgage financing programmes, such as purchasing land through Al Rajhi Bank or other options, which offer special packages that comply with Islamic Sharia law and mortgage loan terms and conditions in Saudi Arabia.
Can commercial businesses obtain a finance loan?
Yes, the bank offers the Real Estate Income product, which aims to provide financing to customers who own investment real estate that generates income or wish to purchase new investment real estate. This product provides financing of up to SAR 25 million with a flexible repayment period ranging from 1 to 15 years. This helps you generate cash flow by financing the future rental income of the investment real estate.
The repayment of installments is in line with the rental income stream, where you can choose monthly, quarterly, semi-annual, or annual repayments. Competitive profit margins start from 6.5% fixed per annum.
To apply, you will need to submit a customer application form, the landlord/owner’s National ID, commercial register (if applicable), and proof of a good credit history. In addition, all leases must be registered in the National Housing Company’s Ejar network. You can start the application process by calling the hotline, submitting an online form, or visiting your nearest bank branch.
Advantages of Al Rajhi Property Finance:
After discussing Al Rajhi Bank’s mortgage financing terms, we present the most important features of obtaining an Al Rajhi mortgage loan, which are:
- Financing up to 85% of the property value: Al Rajhi Bank gives you access to flexible financing of up to 85% of the property value, making it easier for you to buy or build without having to provide large amounts of money up front.
- Flexible repayment durations: Al Rajhi Bank allows you to choose the repayment duration that suits your needs and budget, ranging from 5 years up to 30 years.
- Competitive profit rates: Al Rajhi Property Finance has competitive profit rates that are comparable to the best offers in the market, ensuring you save money in the long run.
- Various facilitations: Al Rajhi Bank offers a range of facilitations that make it easier for you to obtain financing, such as:
- Salary Transfer Facility: You can transfer your salary directly to your Al Rajhi Bank account to facilitate your monthly installment payments.
- Insurance facility: The bank provides you with comprehensive insurance services to protect your property from any unforeseen risks.
- Facilitate the process: Al Rajhi Bank’s dedicated customer service team will help you complete all the necessary procedures to obtain financing quickly and easily.
After reviewing the most important features of Al Rajhi Bank’s investment mortgage financing, we move on to the role of property valuation and its importance when obtaining Al Rajhi mortgage financing.
The role of real estate valuation in obtaining a finance loan.
A real estate valuation is an important first step. This transparent and reliable valuation ensures that the market value of the property you want to buy or build is determined. Based on this value, Al Rajhi Bank determines a suitable financing amount for you, avoiding an additional financial burden in the future.
A real estate valuation not only determines the value but also contributes to several other aspects:
– Risk reduction:
A real estate valuation helps identify any issues or challenges that may affect the value of the property in the long term. This provides you and the bank with peace of mind when making financing decisions.
– Transaction integrity:
An impartial real estate valuation ensures a fair financing process for everyone. It determines the seller’s true value, and gives you, the buyer, financing that is appropriate for the size of the investment.
– Decision Support:
A detailed valuation report gives you valuable information about the property, helping you make an informed investment decision about buying or building your future property.
To ensure the accuracy of the real estate valuation, it is advisable to collaborate with a real estate valuer accredited by the Saudi Authority for Accredited Valuers, and in this regard, we advise you to collaborate with Aain, a trusted partner in real estate valuation and accredited by the Saudi Authority for Accredited Valuers. With an accurate and comprehensive real estate valuation, you can move forward confidently on your journey to obtain a finance loan from Al Rajhi Bank and realize the dream of owning your new home.
Conclusion
A real estate valuation is an essential step in ensuring a smooth and convenient financing experience with Al Rajhi Bank after fulfilling the conditions of your loan. It ensures that you receive accurate financing that is commensurate with the value of the real estate, minimizes risk for both the bank and the customer, and establishes the principles of fairness and transparency in the financing process.
Frequently asked questions:
- How long does it take to get approval for Al Rajhi Bank mortgage financing?
Al Rajhi Bank’s investment mortgage financing offers many advantages, the most important of which is the speed of response when applying for Al Rajhi mortgage financing. In most cases, approval for Al Rajhi Bank mortgage financing takes from one day to a maximum of 10 days.
- How much loan can I get from Al Rajhi Bank?
This is one of the most frequently asked questions, which is why Al Rajhi Bank offers a mortgage calculator service that helps you calculate the approximate amount of financing, but does not represent the exact amount of financing and monthly payments required. Therefore, you can use the Al Rajhi mortgage calculator to get an approximate amount.
What is Al Rajhi Bank’s mortgage number?
To find out more details about Al Rajhi mortgage terms, you can contact them via the Al Rajhi mortgage marketing phone number 8001241222.