Question 1

What is Islamic Murabaha in property financing?

Accepted Answer

Murabaha is a Sharia contract in which the bank buys the property from the seller, then sells it to the customer with monthly installments at a fixed and pre-disclosed profit margin — without interest. It's the method used by the Saudi Islamic banks (Al Rajhi, Alinma, Albilad).

Question 2

What's the difference between Murabaha and an interest-based loan?

Accepted Answer

In an interest-based loan, the customer borrows cash and returns it with variable interest. In Murabaha there is no cash loan — it's a genuine purchase-and-sale operation with a fixed profit. The monthly installment doesn't rise when interest rates move, because it isn't interest.

Question 3

What's the minimum down payment?

Accepted Answer

Saudi banks typically require a 10% minimum down payment. It can drop to 5% with the Sakani government program or rise to 20% for commercial properties. The calculator lets you try different ratios to see the impact on the installment.

Question 4

Is early repayment possible?

Accepted Answer

Yes. Saudi banks allow early repayment with a deduction of part of the unrealized profit margin (called ibra). Terms vary by bank — check your contract or ask the bank directly.

Question 5

What's the maximum financing term?

Accepted Answer

Typically up to 30 years, with the condition that the borrower's age doesn't exceed 70 at the contract's end. The longer the term, the lower the monthly installment and the higher the total profit margin paid.

Question 6

Is the Sakani government program Murabaha or a loan?

Accepted Answer

The Sakani program operates with multiple structures, but direct financing via the Real Estate Development Fund + partnered banks is usually a Sharia-compliant Murabaha with government installment support. The subsidy doesn't change the contract's Sharia nature.

Question 7

What should I prepare before applying for financing?

Accepted Answer

A valid national ID, salary letter from your employer, 3-month bank statement, credit report (Simah), and details of the target property. The application itself is submitted online via the bank's app or website.

Question 8

How does the Damj broker help in the financing process?

Accepted Answer

Our broker liaises with the bank on your behalf after property approval, coordinates the inspection and appraisal, follows up on title transfer, and ensures the deal closes with minimum friction. There's no fee for this service — the 2.5% brokerage is only after the sale closes.

Bank	Profit %	Monthly	Term	Total
ساب (HSBC SAB) الأرخص حسب الإدخال	٥.٨٥%	‏٩٬٠٢٥ ر.س.‏	٢٠ سنة	‏٢٬٣٩٠٬٨٨٢ ر.س.‏
البنك الأهلي السعودي (SNB) أكبر بنك في المملكة	٥.٤٩%	‏٩٬٢٧٩ ر.س.‏	٢٠ سنة	‏٢٬٣٧٦٬٩٢٥ ر.س.‏
الإنماء خدمات إسلاميّة كاملة	٥.٤٩%	‏٩٬٢٧٩ ر.س.‏	٢٠ سنة	‏٢٬٣٧٦٬٩٢٥ ر.س.‏
الرياض	٥.٥٥%	‏٩٬٣٢٥ ر.س.‏	٢٠ سنة	‏٢٬٣٨٧٬٩١٥ ر.س.‏
الراجحي أوسع شبكة فروع	٥.٦٥%	‏٩٬٤٠١ ر.س.‏	٢٠ سنة	‏٢٬٤٠٦٬٢٩٣ ر.س.‏
الجزيرة	٥.٦٥%	‏٩٬٤٠١ ر.س.‏	٢٠ سنة	‏٢٬٤٠٦٬٢٩٣ ر.س.‏
البلاد	٥.٧٥%	‏٩٬٤٧٨ ر.س.‏	٢٠ سنة	‏٢٬٤٢٤٬٧٥١ ر.س.‏

Finance your property,
Sharia-compliant.

This feature is included with Damj Pro

Which bank is cheapest?

4 simple steps

You apply for financing

The bank buys

The bank sells to you

You pay in installments

Murabaha vs conventional interest loan

Where to apply