Dubai’s real estate sector remains a top investment destination. Investors and buyers like off-plan houses. These properties that are still being built have good prices, flexible payment plans, and will be worth a lot in the long run.
An off-plan mortgage in Dubai is needed to finance an off-plan house. Anyone investing in Dubai’s real estate market must understand off-plan mortgages.
This guide covers everything from requirements to the application procedure for off-plan mortgages in Dubai, whether you are a first-time buyer or an experienced investor.
What is an Off-Plan Mortgage in Dubai?
Dubai off-plan mortgages finance new or planned homes. “Off-plan” residences are new or under construction. The best thing about off-plan mortgages is that they help buyers get a loan before the home is ready.
Off-Plan Mortgage Dubai Requirements
Know everything you need to do before looking for an off-plan mortgage in Dubai. You must meet certain requirements to get an off-plan mortgage from most Dubai banks and lenders. These include paying, possessing the right papers, and following the law. Here are the most crucial off-plan mortgage Dubai requirements you should think about:
1. Minimum Down Payment
The down payment is important when getting an off-plan mortgage. The minimum down payment in Dubai is 20% to 25% of the property’s worth. This varies per bank, developer, and property. For properties in high-demand areas, some banks may provide lower down payments or better terms.
2. Credit Score and Financial Stability
Dubai off-plan mortgages require good credit, like any mortgage. Banks use credit ratings to assess loan repayment. Typical credit scores are 600, but higher scores may mean better rates and terms.
Banks also evaluate income stability. After buying the property, you must show that you have steady work and enough money to pay the monthly rent. They may request employment, pay stubs, and bank statements.
3. Required Documentation
You will need to furnish a few important documents to apply for an off-plan mortgage. These usually include:
- Passport & ID: A copy of your passport, which is a form of ID, is required.
- Emirates ID: Everyone who lives there and wants to get a mortgage needs one.
- Proof of Income: It could be pay stubs, job contracts, or papers showing that you run a business.
- Bank Statements: Lenders may review your three- to six-month bank statements to assess your finances.
- Property Information: Off-plan property details, such as the purchase agreement and developer information.
4. Developer’s Approval
Banks usually require Dubai Land Department registration or approval of the developer. The bank will evaluate the developer’s past work to see if the project will be completed on time and to standards. Some developers accomplish projects on time and well, while others are riskier. It is very important to choose a developer with a good track record and who has delivered projects on time previously.
5. The Loan-to-Value (LTV) Ratio
The LTV ratio demonstrates how much the lender will lend versus the value of the property. Off-plan property LTVs are usually 60% to 80% of their value. It depends on your salary, down payment, and other factors. If your LTV is 70%, the bank may give AED 700,000 to buy a house for AED 1 million. You can lower your LTV ratio and improve your mortgage conditions by putting down more money.
6. Age Limit
Most Dubai banks will not issue mortgages to older people. The loan is usually payable when you are 21–65. This ensures mortgage repayment before retirement. Some banks allow you to repay your loan over a longer period after the age limit, depending on their requirements.
7. Employment and Residency Status
Dubai off-plan mortgages require employment or self-employment and a steady income. Most lenders require applicants to live in the UAE, while some may permit non-residents to borrow. Non-residents may need more income verification or a greater down payment.
8. Mortgage Insurance
Mortgage insurance may be required by the bank and the lender. This often protects the lender and borrower if construction or loan repayment fails. This could be life or property insurance.
How to Get an Off-Plan Mortgage in Dubai?
There are a few key procedures to take while getting an off-plan mortgage in Dubai. It could be challenging to pick a property and acquire a loan, but if you break it down into steps, it can be easier to handle. This is a full guide on getting a mortgage in Dubai that is not on the plan.
1. Selecting an Off-Plan Property
The first step in securing an off-plan mortgage is to pick the right house. Dubai features a lot of buildings that are not finished yet, such as premium flats and cheap dwellings. Some of the Downtown Dubai, Dubai Marina, Business Bay, and the Palm Jumeirah best property, are being offered off-plan. Consider the following when selecting a property:
Location:
Discover how the area will grow, making property values and infrastructure better. New metro stations, shopping centres, and work districts frequently improve value.
Developer Reputation:
Use trusted developers like Emaar, Damac, and Nakheel. Check their past work to ensure they finish properties on time and as agreed.
Property Type:
Think about the type of property (i.e., apartment, villa, townhouse, etc.) and if it will meet your requirements. You must also assess the recreational room, lift, swimming pool, parking, and security.
Once you are satisfied, contact the developer or sales team to learn about the property and payment methods.
2. Choosing the Right Bank and Mortgage Plan
The next step is to pick a bank and a mortgage plan. Several banks in Dubai offer off-plan mortgages, but the terms, interest rates, and restrictions are different for each one. Before picking a lender, you should look at a few different ones. Some well-known banks that give out mortgages without a plan are:
- Emirates NBD
- Dubai Islamic Bank
- Abu Dhabi Commercial Bank (ADCB)
- Mashreq Bank
When looking at different mortgage plans, think about these things:
Interest Rates:
Check the mortgage interest rates in Dubai. Because unfinished projects are riskier, off-plan properties may have slightly higher rates than completed properties. Some banks have interest rates that stay the same or change. A fixed rate ensures that your payments will stay the same. A variable rate, on the other hand, can alter based on the market.
Loan Term:
For off-plan mortgages in Dubai, a typical loan term can range from 15 years to 25 years loan term. Choose one that matches your situation and will enable you to comfortably fund going forward with repayments post completion of the property, and whilst applying for the loan.
Deposit and Loan to Value (LTV):
As stated previously, banks frequently require 20% to 25% deposit on off-plan properties. Make sure to verify that you can confidently achieve the LTV ratio you are aiming for to qualify for the best terms.
3. Understanding Mortgage Interest Rates in Dubai
It is imperative for future buyers to research off-plan mortgage rates Dubai. Interest rates can greatly impact how much you pay to acquire a Dubai property mortgage and your monthly repayments. Here is a good understanding of interest rates and what drives them.
Interest Rates for Off-plan Mortgages:
As of July 2025, the interest rates for off-plan mortgages in Dubai are:
Fixed Rates:
For an agent-led mortgage off-plan Dubai the leading interest rate is 4.49% per annum for a 3-year fixed term; this rate applies with the salary transfer. The rate without salary transfer is 4.99%.
Variable Rates:
Some banks have variable-rate mortgages linked to the 3-month Emirates Interbank Offered Rate (EIBOR). For example, HSBC offers a variable rate of 6.18%. This rate is made up of a fixed margin and the EIBOR at that time.
Factors Influencing Interest Rates
Several factors can affect the interest rates on off-plan mortgages:
- Salary Transfer: Salary transfer to the bank offering the mortgage can result in lower interest rates. First Abu Dhabi Bank is currently offering a 3.99% rate for a 3-year fixed term if you transfer your salary to the bank, and a 4.24% rate without salary transfer.
- Credit Score: A better credit score may result in more favorable rates. Banks evaluate borrowers to assess the risk they will take on when lending.
- Loan-to-Value (LTV) Ratio: A lower LTV ratio, which represents a larger down payment, also may help to provide better interest rates, because it reduces the lender’s risk.
- Loan Tenure: Short-term loan tenures attract lower interest rates, and long-term loan tenures might attract higher interest rates in the initial days to compensate for the risk of lending interest over time.
Impact of Interest Rates on Monthly Repayments
- Larger interest rates mean larger monthly payments. For example, for an AED 1,000,000 loan with a 25-year tenure.
- With a Fixed Rate of 4.49 per cent, the monthly credit repayment would be approximately AED 5,500.
- The variable rate is 6.18, which means that the monthly payments can reach AED 6,500.
This demonstrates that the difference in the interest rates can have a little impact on monthly payments and the cost of the loan in the long run.
4. Application Process
Having decided on a mortgage plan and a property, you now have to start the process of application. Here’s what you need to do:
Fill out the Application Form:
The first thing you need to do is fill out a mortgage application form from the bank you want to work with. You will need to give information about your job, income, and the property you are buying.
Submit the Required Documents:
You must send your passport, Emirates ID, proof of income, bank statements, and developer property details. Submit all paperwork correctly to minimise delays.
Pre-Approval Process:
The bank will look at your application, credit score, and financial papers. They might also do a property valuation to make sure that the off-plan property is worth the amount of the loan.
Approval and Offer:
Banks issue pre-approval letters if everything is in order. This document confirms your mortgage amount and loan terms. Signing the mortgage agreement follows accepting the offer.
5. Finalising the Mortgage
Once your mortgage is approved, it’s time to finalise the loan:
Sign the Mortgage Agreement:
This is the legal paper that lists all the rules and conditions of your mortgage. Before you sign, make sure you read the whole agreement and know what you have to do.
Down Payment:
Pay the bank or developer the agreed-upon down payment: 20% to 25% of the property value. This payment is usually due before or during construction.
Construction Monitoring:
The bank may give out money in stages as the property is being built. The bank will make sure that the developer is following the project’s schedule and quality criteria.
You will start making monthly mortgage payments once the property is finished and ready to be turned over. These payments will commence on the timetable you agreed to.
Why Choose an Off-Plan Mortgage in Dubai?
The Dubai real estate market offers many advantages to buying off-plan apartments. These properties are cheaper than completed flats, allowing purchasers to secure a property. Buyers can also benefit from flexible payment plans from various developers throughout construction.
Capital appreciation is another benefit. Off-plan properties in Dubai, notably in Downtown Dubai, Dubai Marina, and Palm Jumeirah, may appreciate before you buy them. The possibility of a price rise makes off-plan ventures appealing for lucrative real estate purchases.
Risks of Off-Plan Mortgages
Despite their benefits, off-plan mortgages also carry risks. Buyers are sometimes taking risks, as off-plan properties are currently incomplete projects, and there could be a number of issues with these unfinished products: the construction could be delayed, the designs could change, the developer could go bankrupt and never complete the project. All buyers will only know what they purchased at the actual handover, and it may and can be disappointingly different from what they set out to buy.
Eastern Housing UAE and Off-Plan Opportunities
Investing in off-plan mortgages, take notice of the overall real estate market in the UAE. Eastern Housing UAE has established itself as an established company in the real estate industry, helping with the services to find off-plan, rental and ready-to-move properties in Dubai. We provide affordability, flexible payment patterns and future capital appreciation. When considering either off-plan villas or off-plan townhouses, Eastern Housing UAE helps you find luxury communities that transform residential living.
Conclusion
The choice of an off-plan mortgage in Dubai must include comparing the interest rates charged by banks, as well as the aspects of what interest level is anchored on. Fixed-rate mortgages can provide a buyer with peace of mind, whilst terms such as variable-rate mortgages may save buyers a small portion of money in the initial period, but might end up costing more at a later date as the rates increase. Take the expertise of a mortgage expert and determine the options that suit your situation optimally.
FAQs
How to get a mortgage in Dubai?
Check your eligibility with several banks. Compare interest rates, terms, and fees on mortgages. After selecting a lender, submit papers and sign the agreement.
What are the rules for off-plan mortgages in Dubai?
Only Dubai Land Department-registered off-plan properties are financed by banks. Buyers must meet income and credit score requirements for financing.
Can you take a mortgage on an off-plan property?
Yes. Dubai banks sometimes finance off-plan properties if the project is DLD-approved and the buyer passes their credit conditions.
Can I exit my mortgage early?
Many banks levy prepayment penalties for early mortgage repayment. This cost is usually 1%–3% of the balance. Read these terms before signing.
Which Dubai banks offer off-plan mortgages?
Major off-plan mortgage lenders are Emirates NBD, Dubai Islamic Bank and ADCB. Banks have different needs, and thus it is important to compare terms.
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