Off-Plan Mortgage

A mortgage for a property that is still under construction, allowing you to finance before the building is completed.

What is Off-Plan Mortgage?

An off-plan mortgage allows you to finance a property that hasn't been completed yet — one that is still under construction or in the planning stage. In the UAE, banks typically require the development to reach a certain construction milestone (usually 50% completion or more) before they will provide mortgage financing. Until that milestone, buyers usually pay the developer directly through a payment plan.

Off-Plan Mortgage in the UAE

Off-plan property purchases are extremely popular in Dubai and Abu Dhabi. RERA (Real Estate Regulatory Agency) regulates off-plan sales to protect buyers through escrow accounts. When financing off-plan, banks may offer lower LTV ratios (60-70%) compared to ready properties. The DLD requires registration of off-plan sales, and Oqood (interim registration) is issued until the property is completed.

Worked Example

You buy an off-plan apartment for AED 1,500,000 with a 60/40 payment plan: 60% during construction, 40% on handover. You pay the developer AED 900,000 over 2 years. At handover, you apply for a mortgage to cover the remaining AED 600,000 (40%). With 75% LTV on the full value, the bank can lend up to AED 1,125,000 — potentially allowing you to refinance the full property.