Property & investment · 2 min read
Off-Plan Mortgages in Dubai: What Banks Will Actually Lend
Off-plan properties are popular, but financing them works differently from buying a finished home. Here's what to know before you commit.
By Trevio ·
The 50% cap
Under Central Bank rules, the maximum loan-to-value for a property bought off-plan is 50%, regardless of the buyer or the property's value. That's lower than the 80% available on many ready properties.
How buyers usually fund it
Developers typically work to a payment plan. Many buyers fund instalments from savings and arrange a mortgage closer to completion, when the property is finished and standard rules may apply. This depends on the bank and your profile, so confirm early.
Know the risks
- Cash flow — instalments continue while you may also be paying rent.
- Valuation at handover — the finished property may value differently from the price you paid.
- Rate changes — the rate available at completion may not match today's.
Questions to ask before buying
- What does the payment plan require, and when?
- Which banks lend on this developer and project?
- Can I afford the balance if the mortgage is smaller than expected?
FAQs
Can I get 80% on an off-plan property?
Not on the off-plan stage — the Central Bank cap is 50%. Financing at completion is assessed separately.
Do all banks finance off-plan?
No. Appetite varies by bank, developer and project.
Is off-plan riskier?
It carries additional risks, mainly timing and valuation. Plan your cash flow carefully.
Eyeing an off-plan project? Book a free consultation and we'll check the financing before you sign.