Off-Plan Financing Is No Longer Rare
It used to be hard to get an off-plan mortgage in Dubai, meaning a mortgage on a property that was still under construction. That has changed.
As payment plans shifted to structures like 70/30, 80/20 or 90/10, where most of the price is paid during construction and only a smaller balance is due at handover, banks saw an opportunity and expanded into this space.
| Payment plan | Paid during construction | Paid at handover |
|---|---|---|
| 70/30 | 70% | 30% |
| 80/20 | 80% | 20% |
| 90/10 | 90% | 10% |
The Two Key Conditions for an Off-Plan Mortgage in Dubai
Before a bank will consider financing an off-plan property, two conditions usually need to be met:
- The buyer has already paid at least 50% of the property price.
- The project is more than 50% complete, according to the Dubai Land Department's official records.
Once both conditions are met, the bank may finance the balance. However, financing is usually only available for projects by major developers on the bank's approved developer list. Major master developers such as Emaar and DAMAC usually appear on these lists, but each bank keeps its own, so check upfront whether your chosen project is on it.
Smaller or newer developers are usually not on these lists. In most cases, financing is limited to properties in Dubai and is aimed mainly at residents, not non-resident buyers.
How Do Repayments Work During Construction?
While the project is being built, the bank releases the money in stages, in line with the developer's milestones and payment calls.
This means the buyer only pays interest on the amount actually disbursed, not on the full approved loan.
Practical example: A buyer purchases a unit worth AED 2,000,000 on an 80/20 plan and has already paid the developer AED 1,000,000, which is 50% of the property price.
When the developer calls for a further 10%, the bank disburses AED 200,000. Until the next tranche is released, interest is calculated only on the AED 200,000 disbursed, not on the full value of the property.
At each further milestone, the bank releases another tranche, and interest is calculated on the cumulative amount disbursed. Once the project is completed and ownership is transferred, the loan moves to a standard principal-and-interest repayment schedule.
Example on a 60/40 plan: A buyer purchases a unit worth AED 3,000,000 and pays the developer 60%, or AED 1,800,000, in line with construction progress.
Once the project has been inspected and found to be 65% complete, the bank finances the remaining 40%, or AED 1,200,000, at handover.
Because the amount is disbursed in a single payment after completion rather than in tranches during construction, the loan moves straight to standard principal-and-interest repayments when ownership is registered.
What Happens at Handover on an 80/20 Plan?
If you bought a property on an 80/20 plan and paid 80% during construction, the bank can usually finance the remaining 20% at handover.
Depending on your eligibility, and especially if it is your first property and priced under AED 5 million, the bank may approve a higher loan-to-value, sometimes up to 80%.
In that case, the approved amount beyond the balance owed to the developer can be used to buy another property in the UAE. The money stays under the bank's control and is transferred to the approved destination; it is not released as free cash.
What Happens If Construction Hasn't Reached 50%?
Until the project passes the 50% construction threshold, the bank usually won't start financing. During that period, you keep paying the developer from your own funds, in line with the payment plan in your sale agreement.
A construction delay can push back the start of financing and increase how much you have to pay yourself in the meantime. So leave a buffer in your cash flow rather than basing your budget on the marketed handover date.
Payments to the developer go into a dedicated project escrow account under Law No. 8 of 2007. The escrow account protects how the money is used, but it doesn't remove the risk of delay. You can check the latest construction progress in the Dubai REST app before making any further payment.
The Bottom Line
An off-plan mortgage has become an established financing route for Dubai residents, as long as the developer is large and well known and the buyer has already paid a significant share of the price.
If you are counting on future financing, plan your mortgage structure before signing the initial sale agreement, rather than waiting until handover.
Eligibility depends on the project passing the 50% construction threshold. You can check the latest progress through the Dubai Land Department's project status system.
The no-objection certificate (NOC) the developer must issue before the mortgage can be registered is also handled through the Dubai REST app.
Area Spotlight: Dubai Creek Harbour
Emaar's delivery track record in Dubai Creek Harbour is a clear advantage. The area is still developing, so its appreciation potential currently runs ahead of short-term liquidity.
Location: 8 | Developer: 10 | Concept: 9 | Pricing: 7 | Rental: 7 | Appreciation potential: 8 | Liquidity: 6
Verdict: Emaar's status as a bank-approved developer makes Dubai Creek Harbour one of the more straightforward projects to finance. On the other hand, prices are still catching up with the area's long-term potential.
FAQs
Can a non-resident get an off-plan mortgage? Usually not through the route described here. This financing is aimed mainly at residents. Non-resident buyers can usually finance properties that are already completed.
How much do I need to pay before the bank finances the balance? Usually at least 50% of the property price. The project itself also needs to be more than 50% complete.
Do I make full repayments during construction? No. You only pay interest on the amount the bank has already disbursed. Full principal-and-interest repayments start once the property is completed.
Can I get a mortgage for any developer's project? No. Banks usually only finance projects by major developers on their approved lists.
Further Reading
For the full picture, read our complete guide to mortgages in Dubai.
- Dubai LTV ratios and loan limits
- The Dubai mortgage process, step by step
- Land financing to build a villa in Dubai
- Dubai Index mortgage and financing service
It is also worth checking the latest offers on the official pages of Emaar and DAMAC. Incentives such as a waived registration fee or an extended payment plan can significantly change how much financing you will need.
Considering an Off-Plan Purchase?
Dubai Index tracks projects and developers eligible for bank financing and helps buyers choose a property the bank will actually be willing to finance. Contact Dubai Index to find a project that fits your budget.
