Can you get a Mortgage for Off-Plan Properties

Would you like to apply for a mortgage for an off-plan property? It’s important to understand that the process differs from financing ready properties. In most cases, banks only finance the amount due after handover. The payments required during the construction phase are usually covered from your own funds. Additionally, you will need a valid residency visa (such as a Golden Visa) and a local bank account to be eligible for a mortgage from a local bank.

Summary: Key Points to Consider for Off-Plan Financing in Dubai

• Mortgages are possible, but only if you have a valid visa and local bank account.
• Financing typically starts after handover, not during construction.
• Flexible payment plans with staggered instalments are common.
• Some projects offer post-handover payment plans of up to 3 years.
• Rental income can be used to cover post-handover instalments.

How Does a Payment Plan Work for Off-Plan Projects?
When purchasing off-plan property in Dubai, you will usually follow a flexible payment plan. This allows you to pay the purchase price in stages, spread across the construction period and sometimes even after handover. This staged approach offers a lower financial entry point, as you do not need to pay the full amount upfront.

A typical payment plan might look like this:

• Initial deposit: 20% plus 4% DLD fee – this is the minimum required to secure the Sale and Purchase Agreement.
• During construction: 60%-70%, paid in multiple instalments.
• On handover: the remaining amount.
• Optional (with selected developers): post-handover payment plan for the remaining amount.

What is a Post-Handover Payment Plan?
Some developers offer a post-handover payment plan, allowing you to spread the final payment over a period of up to three years after completion. This option is particularly attractive for investors planning to rent out the property, as rental income can be used to cover these instalments. Payments can often be made on a monthly or quarterly basis.

Would you like to know more about financing options and current projects with attractive payment plans?

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