How off-plan finance works
Banks lend at most 50% on a home that isn't built yet. So most buyers pay the developer in stages themselves, then use a mortgage for the balance once the home is ready.
By the Key8 advice team · Reviewed by Anfal · Updated 31 October 2026
1. You pay the developer in stages
An off-plan home is sold before it's finished. Instead of one payment, the developer sets a payment plan: a booking amount, instalments while it's being built, and a final amount when the home is handed over.
Plans are often described by their split. In a 60/40 plan, you pay 60% of the price during construction and 40% at handover. Every project sets its own split and dates, so check yours in the sale agreement.
2. What a bank will lend, and when
Before handover, UAE Central Bank rules let banks lend at most 50% of an off-plan property's value. That's why construction instalments usually come from your own savings.
At handover, the home is ready, so the limits for a ready home apply. For a first home under AED 5 million, that's up to 80% of the value for UAE residents and 85% for UAE nationals. A handover mortgage only needs to cover what you still owe the developer.
That's within the 80% limit for a resident's first home. The bank still checks that your income supports the payments.
3. Costs to plan for
- Dubai Land Department fee: 4% of the price, usually due when the sale is registered early on.
- Mortgage registration: 0.25% of the loan plus AED 290, when the mortgage is registered at handover.
- Bank fees: a processing fee of up to 1% plus VAT, and a valuation fee.
- Trustee fees for registering the sale and the mortgage.
Your estimate lists every fee for your numbers. See a full cost breakdown →
4. Start well before handover
Your income, debts and age on the handover date are what the bank assesses, not what they were when you booked. Check what you can borrow early, and again a few months before the date, so the balance is never a surprise.
Will you be able to cover your handover balance?
See what I can borrowThis guide is general information, not advice for your situation. Bank rules and offers change; an advisor will confirm what applies to you.