Mortgages
Off-plan and under-construction mortgage
Buying off-plan means paying the developer in stages while the building goes up. Banks only finance approved projects, and only up to 50% of the price while it is under construction. We help you plan the cash and line up the finance.
Two ways to finance off-plan
The first is a mortgage during construction. The bank pays its share to the developer as stages complete, up to 50% of the price. Only some projects qualify, usually from larger developers and once construction is well advanced.
The second, and the one most buyers use, is to pay the developer's plan in cash until handover and take a mortgage for the remaining balance when the keys are ready. At that point the property is completed, so normal loan-to-value limits apply. See developer payment and handover finance for that route.
Plan the cash before you book
A 60/40 payment plan on an AED 2,000,000 apartment means AED 1,200,000 paid during construction plus the 4% DLD fee of AED 80,000 at booking. If you are counting on a mortgage for the final 40%, check now that you will qualify then, especially if your age or income will change before handover.
Questions about off-plan
Which off-plan projects can be financed?
Each bank keeps a list of approved projects, mostly from established developers. Send us the project name and unit and we will check which banks have it on their list.
Can non-residents finance off-plan?
It is rare during construction. Non-residents usually pay the plan in cash and look at a mortgage at handover, when more banks are open to them.
Does the 4% DLD fee apply to off-plan?
Yes. The developer registers the sale with the Land Department through Oqood, and the 4% fee is usually due at booking. Some developers pay part of it as a promotion.
Find out what the banks will offer you
Two minutes of questions, then a broker comes back to you with the banks that fit and what they are likely to lend.