Key takeaways
- Most off-plan buyers pay instalments to the developer, then finance the balance due at handover.
- Before completion, UAE lenders can usually finance no more than 50% of an off-plan property’s value.
- Banks approve projects individually and base the loan on their own valuation — not the price you paid.
- Start arranging handover finance two to three months before the expected handover date.
On this page
Off-plan property is popular in Dubai because developers spread payments across the construction period. But a large share of the price is often due at handover — commonly 40–60% — and many buyers plan to fund it with a mortgage. Getting the timing and the numbers right makes all the difference.
How off-plan payment plans work
A typical plan might ask for 10–20% on booking, a series of instalments during construction, and the remaining balance on completion ("handover"). Some developers offer post-handover plans, where part of the price is paid in instalments after you receive the keys.
When the sale is registered, the developer records it with the Dubai Land Department through the Oqood system. The 4% DLD fee is usually paid at this stage, not at the end.
How banks look at off-plan property
- Loan-to-value: before completion, UAE rules generally cap lending at 50% of the property’s value.
- Project approval: banks maintain lists of developments they will finance. If your project is not approved, you will need a lender that has approved it.
- Stage of completion: many lenders only finance once the property is complete or very close to handover.
- Valuation: the loan is based on the bank’s valuation at the time, which may be higher or lower than your purchase price.
Example: financing the balance at handover
Suppose you bought an AED 1,500,000 townhouse off-plan and paid 50% (AED 750,000) during construction. At handover, the remaining AED 750,000 is due. If the bank values the completed home at AED 1,500,000 and you qualify, it could lend that balance — a 50% loan-to-value.
Over 25 years at an illustrative 4.49%, an AED 750,000 loan works out at roughly AED 4,164 a month. Mortgage registration (0.25% of the loan), valuation and the arrangement fee are payable at this stage too.
When to start
- 13 months before handover
Confirm which banks have approved the project and review your affordability and documents.
- 22–3 months before
Apply for pre-approval and request a statement of account from the developer.
- 3When the developer issues the handover notice
The bank arranges valuation once the unit is complete and accessible.
- 4Final offer
The bank issues its offer and pays the developer directly on completion.
- 5Handover and registration
The title deed is issued and the mortgage registered; you collect the keys.
Post-handover payment plans and affordability
If you still owe the developer instalments after handover, lenders count them as a monthly commitment when calculating your 50% debt-burden ratio. That can reduce the mortgage you qualify for, so include them in your planning.
Your handover checklist
- Sale and purchase agreement (SPA) and Oqood certificate
- Developer statement of account and payment receipts
- Handover notice or expected completion date
- Passport, visa, Emirates ID and income documents
- Funds for any valuation gap and the mortgage costs
Our handover financing service checks project approval, times the application around your handover date and coordinates with the developer and bank. Tell us about your unit to check options early.
Sources
- Central Bank of the UAE Rulebook, Regulations Regarding Mortgage Loans, Article 3 (Important Ratios): the 50% maximum loan-to-value for property bought off plan and the 50% debt burden ratio.
- Dubai Land Department, Developers asked to pay property registration fees within 60 days, 31 May 2021: off-plan sales are registered by the developer, with the 4% fee paid within 60 days.
- Checked against the sources above on 29 October 2026. Payment-plan splits (such as 10–20% on booking or 40–60% at handover), the timing of bank steps and project approval lists are typical market practice, not regulation, and vary by developer and lender. Worked examples are illustrative and calculated by Mortgage Hub.
Frequently asked questions
Some lenders offer finance on off-plan property before completion, up to 50% loan-to-value, but most buyers finance the balance at or near handover.
Approval lists differ between banks. A broker can check which lenders have approved your development; if none have, you may need to fund the balance yourself or wait.
No — it is normally paid when the off-plan sale is registered. Mortgage registration and other financing fees apply when you take the loan.
This article is general information about mortgages in the UAE, correct to the best of our knowledge on 21 October 2026. It is not financial advice. Rates, fees and lending criteria change and are set by each lender and authority — confirm the details for your situation.
