Off-plan homes are popular with Dubai buyers, but financing them works differently. Understand payment plans, the 50 percent LTV rule and handover mortgages.
Key takeaways
- Off-plan loans are limited to 50 percent loan to value.
- Many buyers use developer payment plans during construction.
- A handover mortgage finances the balance on completion.
- Banks only lend on approved projects and developers.
How off-plan buying works in Dubai
Off-plan means buying a property before it is completed, directly from the developer or through a resale. Buyers usually pay in stages linked to the construction timeline. Payments are made into a regulated escrow account under Dubai rules, which adds protection for buyers.
Developer payment plans
Most off-plan projects offer a payment plan, for example 10 percent on booking, 50 percent spread over construction and 40 percent on handover. Post handover plans spread part of the payment over a few years after completion. Payment plans are not bank loans, so you do not need mortgage approval for these stages.
Bank finance and the 50 percent rule
Under UAE Central Bank regulations, banks can lend a maximum of 50 percent of the value on off-plan property. In practice, many buyers use the developer plan until handover and then take a handover mortgage for the remaining balance, based on the completed property’s valuation.
Planning your handover mortgage
- Get a pre-approval a few months before the expected handover date.
- Check that the project is on the bank’s approved list.
- Budget for valuation, registration and processing fees at handover.
- Remember that the valuation at completion may differ from the purchase price.
Risks to consider
- Construction delays can change your timeline.
- Your income or circumstances may change before handover.
- The final valuation may be lower than the price you agreed.
- Interest rates may be different by the time you need finance.
Speaking with a broker early helps you plan for each of these so the handover goes smoothly.
Buying off-plan?
We will map your payment plan against a handover mortgage and show you exactly what you need and when.
Frequently asked questions
Can I get a mortgage on an off-plan property in Dubai?
Yes, on approved projects, with a maximum loan to value of 50 percent. Many buyers finance at handover instead.
What is a handover mortgage?
A mortgage taken when the property is completed, used to pay the final balance owed to the developer.
Is off-plan cheaper than ready property?
Off-plan prices can be attractive and payment plans are flexible, but buyers should weigh construction and valuation risk.