Most banks in Oman offer property finance to Omani nationals and many to residents. Terms depend on income, the property type, and whether you choose a conventional or Islamic product.
Conventional mortgages
A conventional mortgage charges interest on the outstanding balance. Typical terms run up to 25โ30 years, with banks usually financing up to 70โ80% of the property value (you provide a 20โ30% down payment). Monthly payments combine principal and interest on a reducing balance.
Islamic home finance
For buyers who prefer Shariah-compliant finance, Islamic banks and windows offer two main structures:
- Murabaha โ the bank buys the property and sells it to you at a marked-up price, repaid in fixed instalments. The profit is fixed at the outset, so the total cost is known from day one.
- Ijara โ a lease-to-own arrangement where you pay rent plus a share of the price until ownership transfers to you at the end of the term.
Iskan housing loans
The Government, through the Ministry of Housing (Iskan) and the Oman Housing Bank, supports eligible Omani citizens with subsidised or interest-free housing loans for building or buying a home. Eligibility is income-tested and aimed at lower- and middle-income families.
Financing for foreign buyers
Financing options for non-Omanis are narrower and usually tied to property in approved Integrated Tourism Complexes (ITCs). Some banks lend to expatriate residents with strong income and a larger down payment. Speak to banks directly, as criteria vary, and confirm the development is eligible before relying on finance.
What to compare
- The profit/interest rate and whether it is fixed or variable.
- Maximum financing percentage and required down payment.
- Total repayable over the full term โ use ibana's mortgage calculator.
- Early-settlement fees and life/property insurance requirements.