Off-plan mortgages in Dubai
The Central Bank of the UAE caps a mortgage on an off-plan purchase at 50% of the value, whoever the buyer is. Many buyers pay the developer during construction and only draw a loan at handover, when the home can be mortgaged. Whether a bank will release money earlier depends on that bank and that project.
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The 50% ceiling
Article 3 of the Central Bank mortgage regulations sets the off-plan ceiling at 50% regardless of the purpose, the price or the category of buyer. The reason given is the time to completion and the risk that the building is delayed. A bank may lend less than 50%. It may not lend more.
The rest of the price, the Land Department fees and the developer's schedule have to be funded as the sale agreement says. An escrow account under Dubai Law No. 8 of 2007 is where buyer payments to the developer are held. It does not remove the risk of delay.
Construction stage and handover
During construction you are usually paying the developer, not repaying a mortgage. At handover the Oqood registration can be replaced by a title deed, and that is when a mortgage is registered against the home.
Some lenders will look at a facility before handover. Do not assume yours will. Ask, with the project name, before you pay a reservation fee you cannot get back.
Questions
The Central Bank caps mortgages on property bought off-plan at 50% of the value, regardless of purpose, value or who the buyer is. That is a ceiling. The lender can require a larger deposit.
Sometimes, if that lender finances that project before handover. Many buyers pay the developer during construction and take the mortgage at handover. Ask about the specific project. There is no rule that every bank must lend during construction.
A mortgage is registered with the Dubai Land Department against the interest you actually have. During construction that may be a provisional registration. At handover it is against the title. The bank and the trustee will tell you which filing they need.
No. A developer's payment plan is how you pay the developer. A mortgage is a loan from a bank. You can use one, the other, or a mortgage to settle what is still owed at handover. They are different contracts.