Mortgage quote in Saudi Arabia: 3.92% fixed for 10 years / what am I missing

I want a mortgage that remains comfortable each month, but the two illustrations are built on different assumptions. The purchase in Riyadh is around SAR 862,500, and one option shows 3.92% fixed for 10 years even though its headline advertising suggested less.

My difficulty is deciding what to compare first. The lenders appear to use different loan-to-value bands and fee treatment, so neither the rate nor APR tells the whole story on its own. Would it be more useful to have both rerun with the same down payment and term, then compare monthly payments, fees, the balance after year ten and the cost if the rate resets? I may also move or repay early, so those terms cannot be an afterthought.

Using the period you expect to keep the loan is sensible, although I would hesitate to make that single forecast the whole comparison. Moving or refinancing is reversible in theory, but an unaffordable monthly commitment can force the timing.

I would first put both offers on the same loan amount, term and fee treatment. Then compare the monthly burden and remaining balance at year ten, with upfront charges shown separately. After that, add a second scenario in which the loan continues beyond the fixed rate. APR can remain a cross-check rather than the deciding figure.

What down payment and loan-to-value tier did each lender assume? Also, are the arrangement fees paid in cash or included in the financing? Those differences can make two headline rates look comparable when the actual amounts borrowed are not.

I’d ask both lenders to rerun the figures using one purchase price, down payment, loan term and comparison date.

One caveat to the fixed-period comparison: it can quietly assume refinancing is easy or attractive after year ten. I would add scenarios for keeping the loan after the rate resets, repaying early, and moving before the fixed period ends. Portability only deserves weight if the written terms clearly explain when it applies and what happens to the rate and fees.