Saudi banks are offering mortgage rates for foreign residents ranging from approximately 4.1% to 5% as the Kingdom permits foreigners to own property from 2026, Al-Eqtisadiah reported on January 7.

The Saudi French Bank offered competitive rates at 4.1% for 15 years, whilst the highest rates reached 4.99% and 4.96% at Bank Riyadh and Bank Al Jazira for 20 and 30 years respectively, according to Al-Eqtisadiah's financial analysis unit based on bank data and telephone contact.

Several major banks offered rates in the mid-4% range, with Al Rajhi at 4.64% for 25 years, Al Awwal at 4.55% for 30 years and Al Ahli at 4.4% for 20 years, reflecting substantial differences in property loan pricing for residents depending on each bank.

Some banks impose special conditions on foreign residents seeking property ownership through mortgage financing. Requirements include holding premium residency (special residency for foreign investors) as a condition for obtaining property financing, whilst some lenders demand down payments of at least 30% of the property value.

Several banks set high minimum salary requirements for non-Saudi borrowers. Al Ahli Saudi Bank requires minimum monthly income of SAR19,000 for residents from non-Gulf countries, whilst Al Awwal Bank requires SAR25,000 minimum salary.

Banks consider non-Saudi borrowers higher risk due to factors related to job stability and residency, prompting them to select customers according to strict criteria to ensure stability and reduce risks. Credit history plays a primary role in pricing the offered interest rate.

Internal policies differ between banks according to their policies and marketing plans, stemming from different risk appetites and strategies for growing property loan portfolios granted to foreigners.

Some banks offer programmes dedicated to foreign residents aligned with cautious internal policies, providing financing with more conservative conditions but competitive profit rates.