Five Factors That Help You Get the Best Mortgage

A mortgage is one of the most common financing tools—whether it’s for a first-time home purchase or real estate investment. However, getting approval for a mortgage isn’t automatic; it depends on a set of criteria that lending institutions carefully evaluate.

Below are five key factors that improve your chances of securing the best mortgage, along with tips to boost your approval odds:

1. Monthly Income and Its Stability

Income is one of the most crucial factors lenders assess, as it directly reflects your ability to make monthly payments. Lenders consider not just the income amount, but also its stability and consistency.
Tip: Make sure to document all your income sources and provide clear bank statements.

2. Credit History

Your credit report is essentially a mirror of your financial behavior. It includes information about:

• Your track record of repaying past or existing loans.
• Any payment delays or defaults.
• The ratio of your income to monthly financial obligations.

The cleaner your credit history, the better your chances of getting a mortgage with favorable terms.
Tip: Monitor your credit report regularly through platforms like “SIMAH” (Saudi Credit Bureau), and try to pay off existing debts before applying for a mortgage.

3. Debt-to-Income Ratio

Lenders calculate your debt-to-income (DTI) ratio to ensure you’re not financially overburdened. Typically, your total monthly financial commitments should not exceed a certain percentage of your income—often between 45% to 65%, depending on the lender.
Tip: Reduce other obligations such as personal loans or credit card balances before applying.

4. Tenure in Current Job

The duration of your employment in your current role signals financial and professional stability. The longer you’ve held your job, the more confident a lender is in your repayment ability. Most lenders require a minimum of 3 to 6 months in your current position.
Tip: If you’ve recently started a new job, it may be wise to delay your application until you meet the stability criteria.

5. Property Value and Type

The market value and type of the property (residential, investment, ready-to-move, under construction, off-plan, commercial) have a direct impact on approval.
Lenders will finance all types of projects—residential, investment, construction, and off-plan—but some may favor certain property types. Make sure to position your property strategically.
Tip: Choose a property that fits your income and meets the lender’s conditions. Make sure the property qualifies for financing.

Final Thoughts

Understanding and optimizing these factors significantly increases your chances of approval and gives you access to better interest rates and repayment terms. If you’re considering applying for a mortgage, start by evaluating your situation based on the above points.

Consult Al Natour for the best mortgage solutions—we offer a free initial consultation with our highly experienced advisors to assess your financial readiness.