Mortgage for Off-Plan Property in Dubai: Everything You Need to Know in 2025

Are you dreaming of waking up in your perfect home in the vibrant city of Dubai? Imagine stepping outside to sunshine and endless opportunities every day! If you’ve ever thought about owning property in this incredible city, this is the perfect time to dive into the exciting world of off-plan properties.

Off-plan properties are grabbing the interest of everyone from investors to first-time buyers. Why? Because they often come with flexible payment plans and the potential for rising property values. Just think: you could secure your dream home with just a small initial payment and a mortgage that works for you. Banks are making it easier than ever to get real estate loans, and developers are collaborating to offer great financing options.

Are you curious about how to get a mortgage? Or maybe you’re wondering what your financing choices are? You’re not alone! This guide is here to walk you through everything you need to know about making smart decisions in Dubai’s real estate market.

In this blog, we’ll cover:

• - How to get a mortgage for off-plan properties in Dubai
• - The pros and cons of financing versus paying in full
• - A range of property loans and financing options for 2025

With so many ways to turn your dream into reality, let’s start this journey and make wise choices in Dubai's lively real estate market! Ready to learn more? Let’s get started!

Can You Get a Mortgage for Off-Plan Property in Dubai?

Yes, you can get a mortgage for off-plan properties in Dubai. Many banks offer these loans, but there are some important things to know. Since off-plan properties are still being built, banks look closely at the developer and your financial situation before giving you a loan.

Also, keep in mind that not all banks offer mortgages for off-plan property in Dubai. The terms for off-plan mortgages can be different from those for homes that are already finished.

To fully understand how to buy property in Dubai, you may find the 2025 Guide for Investors useful.

Who Can Apply?

If you live in the UAE, are an expat, or a non-resident investor, you might qualify for an off-plan mortgage. Here’s what you need:

• -UAE Residents: You usually need a stable job with a monthly income of AED 15,000 to AED 25,000, depending on the bank. You’ll also need a valid Emirates ID and a good credit score.
• -Expats: You’ll need to provide your passport, visa, salary slips, and bank statements. Expats might be able to get financing of 50% to 80%.
• -Non-Residents: Some banks have options for overseas buyers, but these come with more rigid rules and lower loan-to-value ratios.

If a developer works with a bank, they may have pre-approved mortgage options also.

How to Get a Mortgage for Off-Plan Property in Dubai

If you believe you qualify for a mortgage on an off-plan property, we’ve outlined some steps to help you secure it easily. Buying off-plan property in Dubai is exciting, and getting a mortgage isn’t as difficult as it might seem.

In case you're also planning to resell your property before it's completed, here's a helpful guide on how to sell off-plan property in Dubai that can walk you through the process step-by-step. Let's break down the steps for getting a mortgage on an off-plan property. With a little preparation, the process can be quite simple.

Step 1: Get Pre-Approved

Start by getting a mortgage pre-approval from a bank. This will show you how much money you can borrow. The bank will look at your income, credit score, and job history.

What you need:

• - A copy of your passport and visa
• - Emirates ID (if you're a resident)
• - Salary certificate or bank statements
• - Credit report from Al Etihad Credit Bureau

Step 2: Choose a Developer with Bank Connections

If you’re looking to buy an off-plan project, try to find developers that work with banks. They usually have mortgage plans that can make things easier for you and might even offer better loan terms.

Just remember, this is just a suggestion - some developers may not have bank connections.

Step 3: Make Your Application and Wait for Approval

After you pick your property, submit your mortgage application to the bank. They will check your documents and process your application.

How long does it take? Most banks take about 7 to 15 working days to process off-plan mortgage applications. The time may vary based on your case.

Step 4: Sign the Offer Letter and Payment Plan

If your application is approved, you will get an offer letter. This letter includes important details like:

• - Loan amount
• - Interest rate
• - Repayment period
• - Down payment and payment schedule

For off-plan properties, banks usually release funds in phases as the construction progresses. To understand the legal aspects of off-plan purchases, consider reading about Dubai's Oqood System, which simplifies the registration process for such transactions.

Exploring Property Finance Options in Dubai for Off-Plan Buyers

Before you submit your application for a mortgage for off-plan property, it's a good idea to pick the financing option that suits your financial situation and plans the best. You have several financing choices available if you’re serious about buying an off-plan mortgage. Let’s take a look at them!

1. Fixed-Rate vs. Variable-Rate Mortgages

With a fixed-rate mortgage, your interest rate stays the same for a set time, usually between one to five years. This means your payments won’t change, giving you stability.

Let’s say you’re thinking about investing in Costa Mare. You will get the mortgage with a fixed interest rate of 5% for a straight 10 years.

On the other hand, variable-rate mortgages can fluctuate with market rates. They might save you money if rates drop, but they also come with some risk.

Let’s suppose you buy a place in Azizi Milan and get a mortgage at 5%, just keep in mind that the rate might go up to 6% or down to 4% later on.

2. Conventional Bank Mortgages

Most banks in Dubai offer conventional mortgages for off-plan properties. Here’s what you can expect:

• - They cover 50% to 80% of the purchase price.
• - The repayment term usually ranges from 15 to 25 years.
• - You will need a down payment of 20% to 50%, depending on whether you are a resident or not.

3. Developer-Backed Mortgage Plans

Some developers team up with banks to provide special mortgage plans. These plans often come with:

• - Lower interest rates.
• - Easy pre-approval processes.
• - Flexible terms that fit the project.

This option can simplify the application process for you.

4. Post-Handover Payment Plans

Developers sometimes offer post-handover payment plans. With this option, you make payments during construction and continue after you receive your property.

This way, you avoid dealing with banks. It’s a great choice if you want more flexibility and want to avoid interest.

5. Islamic Home Finance

For those who prefer Sharia-compliant options, Islamic home finance is available too. This includes methods like Ijara or Murabaha, which don’t involve interest. These are popular options for both residents and non-residents.

Exploring these options can help you find the best way to finance your off-plan property in Dubai. Take your time to compare and choose what suits you best!

For investors interested in rental income, exploring the Ultimate Guide to Investing in Rental Properties in Dubai can give you helpful tips.

Buying vs Financing: Is a Mortgage the Smart Way to Buy Off-Plan in 2025?

In 2025, Dubai's real estate market is growing rapidly, with off-plan projects catching the eye of both local and international buyers. If you’re thinking about buying, you might be wondering whether it’s better to pay cash or get a mortgage.

We are going to break down the pros and cons of each option to help you decide the best way to buy your dream property in Dubai.

Aspect	Cash Purchase	Buying with a Mortgage
Ownership	You own the property outright immediately.	Lower initial payment - you spread out the cost over time.
Upfront Cost	High - requires a large amount of capital upfront.	Lower initial payment - you spread out the cost over time.
Monthly Commitments	None - no monthly interest or loan payments.	Monthly payments with interest - a long-term financial commitment.
Bargaining Power	Strong - cash buyers may secure better deals from sellers.	Moderate - may not have the same negotiating leverage as cash buyers.
Liquidity	Money is tied up in the property, reducing available cash for other opportunities.	Keeps your capital liquid - allows flexibility for emergencies or other investments.
Investment Leverage	Limited - cannot use financing to scale investments.	Enables leverage - can potentially invest in more properties or higher-value assets.
Approval Process	No approval needed.	Requires bank approval - may involve paperwork and waiting time.
Tax Benefits	Not applicable.	Possible tax advantages, depending on specific laws and residency.

Who Should Choose What?

Choose a Mortgage If You Are…	Cash Purchase Is Better For…
A first-time buyer.	Buyers with ready funds.
An expat with a stable income.	Those seeking quick, hassle-free ownership.
An investor wants to keep cash available for other opportunities.	Buyers who are interested in multiple units.

In 2025, using a mortgage to buy off-plan property is becoming a smart financial move. It’s not just about necessity anymore. When used properly, it can help you maximize your returns and manage your cash flow.

To get a full understanding of the costs involved in buying property, including any hidden charges, check out the Zero Property Tax in Dubai? Not Quite - Here's the Fine Print.

Bottom Line

To wrap things up, investing in off-plan properties in Dubai is an exciting opportunity for both new buyers and experienced investors. With the mortgage options available in 2025, getting your dream home has never been easier.

By understanding how the mortgage process works and exploring different financing choices, you can confidently step into the Dubai real estate market. Just think of the possibilities - your dream home is just a few decisions away! Got questions or still unsure where to start? Contact us without any single thought, our experts are here to guide you.