What's the difference between a personal loan and a mortgage in this calculator?
For a personal loan, you enter the financing amount directly. For a mortgage, you enter the property value and the down payment percentage, and the calculator automatically computes the actual financing amount (property value minus the down payment).
How is the monthly installment calculated?
Using the standard "amortizing" (reducing-balance) formula: the installment is fixed each month, but the profit/interest portion within it is higher at the start and gradually decreases as the remaining principal declines — the same formula the Saudi Central Bank (SAMA) directs banks to use to calculate the Annual Percentage Rate (APR).
What's the minimum down payment for a mortgage in Saudi Arabia?
Per SAMA instructions, the maximum loan-to-value (LTV) ratio is generally 70%, meaning a down payment of no less than 30% — this percentage may be lower for some beneficiaries of government housing support programs (like Sakani), so check your eligibility directly with the bank or financing entity.
Is the profit rate I enter here the same as what the bank will offer me?
Not necessarily — this calculator is an estimate and relies on the rate you enter. The actual profit rate varies by bank, your job tenure, your credit report (Simah), and the down payment percentage. The typical profit margin in Saudi mortgage financing usually ranges between 4% and 6% annually according to market sources.
Why does the calculator show the remaining balance after certain years?
To help you understand the "payoff timeline" — since a large part of the installment in the early years goes to profit rather than the principal, knowing the remaining balance at 25%, 50%, and 75% of the loan term shows you the actual value if you're considering early payoff.
Are admin fees mandatory?
No, it's an optional estimative field — if your bank charges admin or property appraisal fees as a flat amount or a percentage of the financing, enter it to get an estimate closer to the full total cost.
Can I calculate in reverse (from installment to financing amount)?
Yes, choose "I have an installment I can afford" from the calculation method at the top of the form, and enter your comfortable monthly installment, profit rate, and repayment term, and you'll get the maximum financing amount you can obtain with exactly that installment.
