Off-Plan Mortgages in Dubai: Payment Plans vs Financing

Can you get a mortgage on an off-plan property in Dubai? Yes — but it works differently from financing a ready home, and for many buyers the developer's payment plan makes a mortgage unnecessary until handover. This guide explains how off-plan mortgages work in Dubai, what banks will lend, and how to decide between financing and a payment plan. ## What is off-plan property? Off-plan means buying directly from a developer before (or during) construction, at launch pricing, with payments spread across the build. Your money sits in a RERA-regulated escrow account tied to construction progress — the developer can only draw funds as building milestones are certified. Handover typically comes 2.5–4 years after launch. ## Do you need a mortgage for off-plan at all? Often not until handover. A typical construction-linked plan — say 80/20 — asks for around 10% on booking and staged instalments totalling 80% during construction, with 20% due at handover. Many buyers fund the construction instalments from savings or income and only finance the final portion. That's the key difference from a ready purchase: **the payment plan itself is interest-free financing from the developer**. ## How off-plan mortgages actually work UAE banks do lend against off-plan, with conditions: - **Loan-to-value is capped at 50%** for off-plan (versus up to 80% for ready homes for residents). You fund at least half from your own resources during construction. - **Approved projects only.** Banks maintain lists of approved developers and projects — Emaar, Damac, Nakheel and other majors are widely covered; boutique developers may not be. - **Disbursement follows construction.** The bank releases payments to the escrow account per the payment schedule, and interest accrues only on drawn amounts. - **At handover**, most buyers refinance into a standard mortgage at ready-property rates and LTVs. Non-residents can access off-plan financing too, typically at lower LTVs (around 50%) with UK, EU and GCC income accepted by several banks. ## Payment plan vs mortgage: how to decide **Take the payment plan alone if** you can fund the construction instalments from cash flow — it's interest-free, and you keep full flexibility to assign (resell) the contract before handover once you've paid the developer's threshold (usually 30–40%). **Add a mortgage if** you want to commit less cash during the build, you're stretching into a larger unit, or you plan to hold long-term and want handover financing arranged early. Model repayments with our [mortgage calculator](/mortgage-calculator). ## Costs to budget beyond the price - **DLD registration:** 4% of purchase price (often at booking for off-plan) - **Oqood (off-plan registration) fee:** ~AED 3,000 - **Mortgage registration (if financing):** 0.25% of the loan - **Valuation and bank fees:** AED 3,000–5,000 typical There is no annual property tax and no tax on rental income in the UAE. ## Where to start Current launch inventory with payment plans: [off-plan townhouses](/off-plan/townhouses), [off-plan villas](/off-plan/villas), and [Emaar apartments](/developers/emaar-properties/apartments-for-sale). For overseas buyers, our [guide to buying from the UK](/blog/how-to-buy-property-in-dubai-from-uk) covers the remote process end to end. USH is a top-ranked broker for Emaar and Dubai's major developers — we see launch allocations early, know which projects banks will finance, and can introduce mortgage partners who handle non-resident cases. [Talk to an advisor](/contact) before the next launch.