What is an Off-Plan Mortgage?
An off-plan mortgage allows you to finance a property while it is still under construction, rather than waiting until handover. Unlike typical home loans that start after the property is completed, off-plan financing lets banks release funds in stages, aligned with construction progress. This approach gives buyers greater flexibility in paying for the property during the building phase.
2025 Rule Changes & New Opportunities
Dubai has introduced new off-plan mortgage rules in 2025, making this option more accessible. Key updates include:
- Projects must reach at least 40% completion before banks can approve financing.
- Buyers are required to fund 50% of the property cost upfront, with the remaining 50% eligible for financing under an off-plan mortgage.
- Loans are disbursed in construction tranches—funds are released as the developer meets each milestone.
- Pre-approvals are valid for up to 90 days, and stricter income verification is now mandatory.
These changes make off-plan mortgages more feasible for a wider range of buyers while maintaining protections for lenders and developers.
Who Is Eligible?
To qualify for an off-plan mortgage, you will need:
- A property from a pre-approved or reputable developer
- Project completion of at least 40%
- Verifiable income (salary or business)
- A clean credit history
- The ability to cover the initial 50% down payment
If your developer doesn’t qualify, alternatives include developer payment plans or a conventional mortgage at handover.
Pros & Cons of Off-Plan Mortgages
Advantages
- Lower initial cash outlay versus paying 100% upfront
- More time to spread payments
- Enhanced liquidity during construction
- Ability to lock in financing early
Drawbacks
- Interest payments may increase the total cost
- Only select developers are eligible
- Disbursements depend on construction milestones
- Off-plan interest rates may be higher than standard mortgages
Alternatives When Off-Plan Isn’t Feasible
If your property or developer doesn’t meet eligibility criteria, consider:
- Developer Payment Plans: Many projects offer built-in installment schemes, both pre- and post-handover.
- Standard Mortgage at Handover: Pay developer installments during construction, then arrange financing once the property is complete.
Why Choose BNW Mortgages?
At BNW Mortgages, we specialize in guiding buyers through complex mortgage options, including off-plan financing. We assist with:
- Verifying your eligibility
- Aligning with approved developers
- Providing end-to-end support from application to final handover
Contact us today to explore off-plan mortgage options tailored to your needs.
