Off-plan mortgages

How an Off-Plan Mortgage Works in the UAE

You can use a mortgage to buy off plan, but a bank may lend at most half of what the property is worth. You fund the rest yourself.

Short answer

The most a bank may lend is 50% of the value. That is the same for every buyer, whatever the property is for or costs.

The rest comes from you, often before the home is finished. And your bank decides whether it lends on that project at all.

Can you get a mortgage on an off-plan property?

Yes. Buying off plan means buying a home before it is built. The rules allow a bank to lend on it. They just allow much less than on a finished home.

Two things matter more here than on any other purchase. How much the bank may lend is capped at a lower level. And when the bank pays in is not the same as when you pay the developer. Most of this page is about that gap.

If you want to know whether you can borrow at all, and roughly how much, what UAE banks look at covers that first.

How much can a bank lend on an off-plan property?

At most 50% of its value. The rule applies regardless of purpose, value, or category of purchaser. A first home, a second home, a UAE national, an expatriate: all the same.

It is a Central Bank rule, so it does not change by emirate. An off-plan mortgage in Dubai and one in Abu Dhabi start from the same cap.

The regulation gives its reason. Building takes a long time, and there is a higher risk that the project is never completed. So the rules ask a bank to carry less of that risk.

The cap is a ceiling, not an offer. The regulations set minimum standards, and nothing in them prevents a bank from adopting more conservative limits. Every bank must also hold a board-approved lending policy, setting the most it will lend on each kind of loan.

The limits on a finished home are higher, and they depend on who you are and what the property is worth. How loan to value works sets them all out.

What do you pay before the bank pays anything?

Your developer sets a payment plan. It is a contract between you and the developer, and it says when each part of the price is due. The bank is not a party to it.

The bank’s share is capped. So whatever part of the price the bank does not lend comes from you, whenever the plan asks for it. If the valuation matches the price, that is at least half the price. However the plan spreads it out, it is your money.

This is where off-plan purchases most often run short. A plan can ask for large payments before a bank is willing to pay anything in. Work out where each payment will come from before you sign, not when it falls due.

In Dubai, the money you pay does not simply go to the developer. Payments from off-plan buyers are deposited in an escrow account in the project’s name, and that account is used only to build that project.

Does the bank lend during construction or at handover?

There are two points at which a mortgage can come in, and they are not the same arrangement.

Borrowing while it is being built

The bank pays in before the building is finished. The home does not exist yet, which is exactly the risk to completion the regulation names.

Borrowing at handover

You pay the developer from your own money during the build, and the mortgage covers what is due when the home is finished. By then there is a finished property to value.

Which of these you can get is not set by the rules. It is set by each bank, under its own policy, and it can differ from one project to the next.

Whether it finances the project at all

A bank’s policy may limit it to developers or projects it has approved. Ask before you pay a booking deposit, not after.

When it will pay in

A bank may wait for the build to reach a certain stage, or for you to have paid a certain share yourself. We do not publish a figure, because it is set by each bank.

How much, below the cap

The 50% cap is the most any bank may lend. Your bank may set its own, lower limit.

How it treats the home at handover

Confirm whether a loan taken once the building is finished will be assessed as off plan or as a finished home. We do not assume the answer.

None of this is the bank being difficult. The regulation names the risk that a project is never completed as the reason for the lower cap. A bank that sets conditions on which projects it finances, and when, is managing the same risk.

Why does the valuation matter more when you buy off plan?

The limit is not worked out on the price you agreed. Loan to value is the ratio of the loan outstanding to the appraised value of the property.

Before a bank makes a final commitment to lend, an independent on-site valuation must be carried out. The valuer must be independent of you, the seller, the developer or contractor, and the loan decision process. Appraisal reports must not reflect expected future house price appreciation.

Off plan, you agree the price before the home exists. The valuation that counts is the one done when the bank commits to lend, and the longer the gap, the more room there is for the two to differ. If the valuation comes in below the price, the limit is worked on the lower figure, and you cover the gap.

Example

You agree to buy an off-plan apartment for AED 2,000,000.

When the bank commits to lend, the valuer puts it at AED 1,900,000.

The limit is worked on the valuation, so the most that may be lent is 50% of AED 1,900,000 = AED 950,000.

You fund the rest: AED 2,000,000 − AED 950,000 = AED 1,050,000. That is AED 950,000 for the half of the valuation the bank may not lend, plus AED 100,000 because the valuation came in under the price. Registration and bank charges sit on top.

An illustration of how the off-plan cap and the valuation combine. It is not a quote, and not a statement that any bank would finance this project; a bank may lend less than the regulatory maximum, or not lend at all.

The gap between the price and the valuation is the part people do not plan for. It arrives at the end, when most of your own money has already gone to the developer.

How does registration work for off-plan property in Dubai?

Registration is handled by each emirate. This section describes Dubai, where the rules are published in law and on the Land Department’s own service cards.

Dubai keeps two registers. An off-plan sale is entered in the interim registerfirst, before it reaches the Property Register. The developer does this through Oqood, the Land Department’s portal for it.

The developer registers the sale there. The sale and purchase contract must be registered within 90 days of the date it is signed.

A home in the interim register can already carry a mortgage. The law allows a unit sold off plan and entered there to be mortgaged, and the Land Department has a service for the developer to register the sale together with an initial mortgage, backed by a letter from your bank.

What a Dubai purchase involves sets out what the Land Department charges for each of these steps, quoted from its service cards.

What happens if the project is not finished?

This is the risk behind the lower cap, so it is worth knowing what Dubai’s escrow law says.

If a project is not completed, the escrow agent must, after consulting the Land Department, take the steps needed to protect depositors. That means making sure the project is completed, or that depositors are refunded their payments.

That is a protection for the money in the account. It does not decide what happens to your mortgage. If a bank has already paid in, talk to that bank about your loan.

What cash do you need on top?

Your share of the price is not the only money you need. Registration, the valuation and bank charges come on top of it.

What cash you need to buy a property in the UAE shows which of those costs CredMe budgets for on an off-plan purchase, and which it leaves out.

What are the requirements for an off-plan mortgage?

There are two sets. The project has to fit your bank’s own rules on off-plan lending, set out above. And you have to pass the same checks as any other buyer. Buying off plan changes the property limit. It does not change you.

Your bank still checks your income and your debts. There is still a ceiling on how much of your income can go to debt repayments, which the debt burden ratio explains. You are held to whichever limit is lowest for you, and on a large purchase that may not be the property limit.

If you live outside the UAE, the rules have no separate category for you. The off-plan cap applies to every buyer. What changes is which banks will lend to you, which what changes for a non-resident buyer covers.

What should you check before you sign?

That a bank will finance this project

Before the booking deposit. A payment plan you cannot fund is still a contract you signed.

That you can fund your share without the bank

At least half of the valuation, plus any gap below the price, whatever the payment plan says about timing.

Room if the valuation lands low

A price agreed years before handover can be above what a valuer says the home is worth when the bank commits.

Which limit binds you

Your income and debts can hold you back before the property limit does.

CredMe works out what you could borrow and which limit is holding you back. That is an initial assessment, not a lending decision. A CredMe Mortgage Consultant goes through it with you before any bank is approached, and the bank underwrites the application and makes the final decision. CredMe is not a bank and cannot approve or decline a mortgage.

Common questions

Can I get a mortgage on an off-plan property in the UAE?
Yes, where a bank is willing to finance the project. The regulations cap the loan at 50% of the property’s value, and the bank decides whether it lends on that project and when.
What is the maximum loan to value on an off-plan property?
50%, regardless of purpose, value, or category of purchaser. The regulation puts this down to the long-term nature of the development process and the higher risk to completion.
Will a bank lend me the full 50%?
Not necessarily. The regulations set minimum standards, and nothing prevents a bank from adopting more conservative limits. The cap describes the most that may be lent.
Do I pay the developer before the mortgage starts?
Depending on your payment plan, yes. The part of the price the bank does not lend comes from you, and the plan decides when. The bank decides whether and when it pays in.
Is the valuation based on the price I agreed?
No. Loan to value is measured against the appraised value, and an appraisal must not reflect expected future house price appreciation.
Can the developer choose the valuer?
No. The valuer must be independent of you, the seller, the developer or contractor, and the loan decision process.
What is Oqood?
Dubai’s system for registering off-plan sales in the interim register, before a title deed exists. The developer registers the contract within 90 days of it being signed.
Can a mortgage be registered before the building is finished?
In Dubai, yes. Units sold off plan and entered in the interim register may be mortgaged, and the developer can register the sale together with an initial mortgage.
Is my money protected while the building goes up?
In Dubai, payments from off-plan buyers go into an escrow account used only to build that project. If a project is not completed, the escrow agent must act to have it completed or to refund depositors.
Does buying off plan change the income checks?
No. The limit on how much of your income can go to debt still applies, and your bank still checks your income under its own policy.
Can I buy off plan with a mortgage if I live outside the UAE?
The regulations have no non-resident category, and the off-plan cap applies to every category of purchaser. Whether a bank lends to you from overseas is its own policy.
Can CredMe tell me if a bank will finance my project?
CredMe gives you an initial assessment, not a lending decision. A CredMe Mortgage Consultant goes through it with you, and the bank underwrites and decides.

How this page was produced

Written by CredMe Team

Based on CredMe's mortgage assessment methodology and verified regulatory and government sources

Last reviewed 14 September 2026

The lending limits here come from the Central Bank rulebook. The registration and escrow sections come from Dubai law and Land Department service cards. Each source is listed below with the date it was read. The example uses made-up figures to show how the cap is applied. We do not publish any bank’s conditions for off-plan lending, because each bank sets its own and we have no published source for them.

Indicative guidance only. Not a formal offer of finance and not a lending decision. The off-plan cap is a regulatory maximum; each bank applies its own criteria and decides which projects it finances, and every figure depends on full underwriting by the lender. CredMe is not a bank and cannot approve or decline a mortgage. See our disclaimer.

Related guides

  • How LTV Works on a UAE Mortgage

    What loan to value means on a UAE mortgage: what the ratio is measured against, which cap applies to which buyer and property, and why the regulatory maximum is an outer limit rather than an offer.

  • Getting a Mortgage in Dubai

    Getting a mortgage in Dubai: what the Land Department charges to register a sale and a mortgage, what freehold and Oqood mean in practice, and which parts of the process are federal rather than local.

  • Non-Resident Mortgage UAE

    The UAE mortgage regulations contain no non-resident category. What changes when you buy from overseas is which lenders will look at you and on what terms, not the rules themselves.

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