Al Zad Real


Buying an off plan property with finance or a mortgage in Dubai is something that is becoming more and more common. It’s allowing buyers who previously simply wouldn’t have been able to enter the market to not only do so but do so for properties that are in a price range they never dreamt of.

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Despite its rising popularity, the subject of buying an off plan property with a mortgage is one that most buyers simply don’t know all that much about. This guide is designed to change that and will go through all the key points you need to know about buying off a plan using a mortgage right here in Dubai.

Can I get a mortgage for an off-plan property?

Yes. Buyers can absolutely get a mortgage for most off-plan properties in Dubai. Like with any mortgage, there are qualifying conditions that need to be met however these are relatively straightforward and similar to what would be required for a ready property.

How much can I borrow for an Off Plan Property?

As most buyers are well aware the maximum loan-to-value ratio or as it often referred to “LVR” for a ready property is 80%.

This basically means that if the property being purchased is say, 1,000,000 the maximum amount the bank will lend against that property is 800,000 or 80%.

In the case of an off-plan purchase, the maximum loan-to-value ratio is 50%. This is a percentage that applies to both UAE nationals as well as expats or nonresidents. So as in the previous example, if the property being purchased is say 1,000,000 the maximum amount the bank will lend against that property is 500,000 or 50%. It’s important to note that the LVR stays the same whether you are buying an off-plan villa, townhouse, or apartment.

It is also important to note that the 50% finance can only be done so once the buyer has paid 50% or more of the property and not before. This means any potential buyer must have enough cash funds to cover at least 50% of the property being purchased.

Which banks will finance an off plan property purchase?

Unlike with a ready property where buyers can more or less use any bank to obtain their mortgage the options are slightly smaller when it comes to off plan.

The reason for this is that not all banks offer financing for off-plan purchases and when they do they are selective when it comes to which project they will actually finance. Generally speaking, banks only approve mortgage loans for properties that belong to the Master developer category, the likes of Emaar Properties and DP. Having said that they also do occasionally approve loans for projects belonging to certain private developers so all is not lost in those instances.

Qualifying for an off plan property mortgage

Obtaining approval for an off plan property mortgage is in many ways no different from being approved for a ready property. Assuming the developer is on the approved list of developers against which the bank will lend,  it will carry out the usual assessment criteria of the applicant. Much like with a ready property mortgage, the qualifying criteria will be rather typical and may vary from bank to bank.

Can I still sell if I have a mortgage on my off plan property?

The short answer is YES. Having a mortgage or financing will not stop you from selling your off plan property. The process is will be slightly different as there is a bank involved but this is not a big hurdle and does not tend to complicate the process.

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