Off-plan mortgage in Dubai: the 50% cap, the handover balance and the bank's valuation

Yes, you can get a mortgage on an off-plan home in Dubai, but a bank may lend at most 50% of its value before the home is finished. That cap is in the Central Bank's mortgage regulations, checked on 14 November 2026. Many banks also wait until the building is about 50% built, which is their own policy, not the law.

So most off-plan buyers pay the stages before handover from their own money and borrow, if at all, for the balance due at handover. This guide sets out the rules, what banks do, how big the handover balance is on 950 real payment plans, and what a loan looks like on an AED 1.5 million flat.

This is general information, not financial or legal advice. We don't recommend a lender or a loan.

What is the maximum LTV for an off-plan mortgage in Dubai?

The maximum loan-to-value (LTV) on a home bought off-plan is 50%, for every buyer, at any price. On a finished first home under AED 5 million it is 80% for expatriates and 85% for UAE nationals. Source: the Central Bank's Regulations Regarding Mortgage Loans, Article 3, checked 14 November 2026.

LTV is the share of the property's value that a bank or finance company may lend. The UAE Central Bank (CBUAE) sets the caps in its Regulations Regarding Mortgage Loans (Circular 31/2013, as amended by Resolutions 96/2019 and 31/2/2020) (CBUAE Rulebook):

Buyer	First home, up to AED 5 million	First home, over AED 5 million	Second home or investment
Expatriate	80%	70%	60%
UAE national	85%	75%	65%
Any buyer, home bought off-plan	50%	50%	50%

The exact wording differs a little at the AED 5 million line: "less than" for expatriates, "less or equal to" for nationals.

On off-plan homes, the rule reads: "the maximum LTV for mortgages on property being purchased off plans is 50% regardless of purpose, value, or category of purchaser". The reason it gives is "the long term nature of the development process and the higher level of risk to completion".

The same regulations add four points that matter for an off-plan buyer:

• Your money goes first. Where a loan pays a developer in stages, the lender "must first use owner's equity portion" of the price before it pays out any loan money (Article 2). Each payment should follow completion milestones that the lender, or an independent professional, has confirmed on site.
• The down payment must be your own. It should come from your own resources, "not from other sources of borrowing (including personal loans or credit cards)" (Article 2).
• The value is the bank's valuation. Before it commits, the lender needs an independent on-site valuation, and the report "should not reflect expected future house price appreciation" (Article 2).
• Income limits apply too. Repayments on all your loans can't pass 50% of your income (the debt burden ratio). An expatriate can borrow at most 7 years' annual income, a UAE national 8 years. The longest term is 25 years (Article 3).

Do banks only lend once the building is 50% built?

Often, yes, but it is bank policy, not law. The Central Bank's regulations, checked 14 November 2026, set no minimum % built. Gulf News called 50% "the prevailing cut-off line" in March 2025, after banks moved down from 80% in 2023. Some bank and developer deals start lower, at 35%.

What the news reports say:

• In June 2023, Gulf News reported that banks that had lent only once a project reached 80% completion were now willing to lend "by the 50 per cent or over stage" (Gulf News, updated 12 June 2023).
• In March 2025, Gulf News reported a DAMAC and ADIB deal that opens financing once a project has crossed 35% completion, for buyers who have paid 50% or more to the developer (Gulf News, updated 4 March 2025).
• In August 2026, Khaleej Times reported off-plan products from Dubai Islamic Bank, which releases funds to developers by construction milestone, and from ADCB with Ellington Properties. Both lend up to 50% of the value (Khaleej Times, 26 August 2026). The article gives no minimum % built for either.

Some products cover only one developer's projects. So ask your bank before you book: will it lend on this project, at what stage, and on what valuation?

How many off-plan projects in Dubai are 50% built?

Few. Of the 469 projects on this site that the DLD register lists as under construction, 131 were 50% built or more in the register as of 11 November 2026. The median one was 23.5% built. Source: our analysis of the DLD project register, matched to 627 of the 988 projects we list.

DLD status of the projects we matched	Projects
Active (under construction)	469
of which 50% built or more	131
of which under 20% built	198
Not started	110
Finished	45
Pending or conditional	3
Total matched	627

So if your bank waits for 50%, about 7 in 10 of the active projects we matched had not reached it yet. Check the current figure for your project in the Dubai REST app. The developer's figure and the DLD's can differ, so check both.

How much of the price is due at handover?

The median plan on this site leaves 40% of the price for handover. Of the 950 projects with a published payment plan in November 2026, 642 (about two in three) leave 40% or more, 387 leave 50% or more and 162 leave 60% or more. Source: our analysis of the payment plans listed on this site.

• 40% is also the most common share at handover: 226 plans. The next is 50%: 202 plans.
• 145 plans leave 20% or less for handover.
• All 950 plans add up to 100%.

See payment plans explained and, for the cash each quarter, payment plans in dirhams.

Can I get a mortgage for the handover payment?

Usually, yes, if the bank approves you and values the home high enough. A 60% handover balance fits inside the 80% cap for an expatriate's first finished home, but not inside the 50% off-plan cap. The Central Bank rules, checked 14 November 2026, don't say which cap applies to a loan drawn at handover.

If you borrow once the home is finished, banks normally use the caps for finished homes (80% or 60%). If you borrow before completion, the 50% off-plan cap applies, and a 60% handover balance leaves a gap of at least 10% of the price to pay in cash. Ask the bank which cap it will use, and get it in writing.

If you can't borrow the balance, a post-handover plan is another way to spread it.

What if the bank values the home below the price?

Then the loan is smaller and you pay the difference in cash. The bank lends a share of its own valuation, not of your price. Of the 666 projects with a price check on this site, 235 had a from price above similar DLD off-plan sales in the 12 or 24 months to 9 November 2026.

A valuer looks at what similar homes have sold for. Our price check gives a first look. It compares each project's from price per sq ft (smallest home type) with the median of similar off-plan sales registered with the DLD:

Price check	Projects
Below similar sales	401
In line with similar sales	30
Above similar sales	235
of which 10% or more above	107
of which 20% or more above	61

Among the 387 plans that leave 50% or more for handover, 291 have a price check, and 112 of those are above similar sales.

A price check is not a valuation. It uses the smallest type's from price, off-plan sales and a median. A valuer values your own unit, using the sales the valuer picks. Read is off-plan overpriced? to check a price yourself, and ask the bank what valuation it would expect before you book.

How much are mortgage fees in Dubai?

On an AED 600,000 loan, expect about AED 15,420 in fees. The Dubai Land Department charges 0.25% of the loan plus AED 270, and a service partner fee of AED 4,000 plus VAT (DLD page, updated 10 November 2026). Banks add an arrangement fee and a valuation fee (Bayut, updated 20 October 2026).

The DLD fee of AED 270 is AED 250 for the title deed plus AED 10 knowledge and AED 10 innovation fees. On an off-plan (Oqood) unit the service partner fee is AED 5,000 plus VAT. Bayut puts the arrangement fee at about 0.5% to 1% of the loan plus VAT, and valuation at about AED 2,500 to 3,500 plus VAT. The full list is in the costs on top of the price.

Fee	AED
DLD registration, 0.25% + AED 270	1,770
Service partner fee, AED 4,000 + VAT on a finished unit (AED 5,000 + VAT, so 5,250, if the loan is registered on the Oqood before completion)	4,200
Bank arrangement fee, 1% + VAT (if charged at 1%)	6,300
Valuation, about AED 3,000 + VAT	3,150
Total	15,420

How much can I borrow on an AED 1.5 million off-plan flat?

With 40% due at handover, you would borrow AED 600,000. That is under every cap if the bank values the flat at its price. At a valuation 30% lower, a loan taken before completion stops at AED 525,000. These are our own figures from the Central Bank caps checked 14 November 2026, not a bank offer.

An expatriate buys a flat off-plan for AED 1,500,000 on a 20/40/40 plan and wants to borrow the 40% due at handover.

	AED
Booking, 20%	300,000
Construction instalments, 40%	600,000
Paid before handover	900,000
Due at handover, 40%	600,000
Price	1,500,000

Separately, the 4% DLD fee comes to AED 60,000; ask when it is due.

The bank lends the lower of the balance you owe and its LTV cap on its valuation:

Bank valuation	80% cap (first home, finished)	60% cap (investment, finished)	50% cap (off-plan)
AED 1,500,000 (the price)	1,200,000	900,000	750,000
AED 1,350,000 (10% lower)	1,080,000	810,000	675,000
AED 1,050,000 (30% lower)	840,000	630,000	525,000

With 40% at handover, the AED 600,000 balance is under every cap in the first two rows. In the last row, a loan taken before completion would stop at AED 525,000, and you would pay the other AED 75,000 in cash. If the same flat had a plan with 60% at handover (AED 900,000), the 50% off-plan cap would leave a gap of AED 150,000 even at a full valuation.

The bank will also check your income. Under the 7-years rule, a loan of AED 600,000 needs an annual income of at least about AED 85,700, and repayments on all your loans can't pass 50% of it. Banks may also require life insurance and property cover; ask which.

Can non-residents get an off-plan mortgage in Dubai?

Some banks lend to non-residents, but each bank sets its own terms. The Central Bank's mortgage regulations, checked 14 November 2026, have no separate category or cap for non-residents. The 50% off-plan cap applies to every buyer, and banks often lend non-residents less than the caps allow.

Expect a bank to ask for more documents, a larger down payment and proof of income from abroad. See buying off-plan from abroad for the steps you can do without living in Dubai.

What should I check before I book?

Check three things: whether a bank will lend on this project, how far it is built, and whether the price is close to similar sales. On this site, 131 of 469 active matched projects were 50% built in the DLD register as of 11 November 2026, and 387 of 950 plans leave 50% or more for handover.

• Ask two or three banks whether they lend on this project, from what % built, and up to what LTV for you.
• Get an approval in principle, and ask how long it lasts. Handovers move: see whether developers hand over on time.
• Check the project's % built in the Dubai REST app, and keep cash aside in case the valuation comes in low.

Frequently asked questions

Can I use a personal loan for the down payment?

No. The Central Bank's regulations say the down payment should come from your own resources, "not from other sources of borrowing (including personal loans or credit cards)".

Does the bank pay the developer before I do?

No. Where a loan pays a developer in stages, the bank must first use your share of the price. Loan money comes after, and each payment should follow a construction milestone confirmed on site.

Is "50% built" the same as "50% paid"?

No. % built is the construction progress in the DLD register. % paid is how much of the price you have paid the developer. Some bank deals look at both: the DAMAC and ADIB deal reported in 2025 needed 35% built and 50% paid.

Can I get an Islamic home finance product for off-plan?

Yes, some Islamic banks offer them. The same Central Bank caps apply. Khaleej Times reported a Dubai Islamic Bank off-plan product in August 2026 that releases funds by construction milestone.

Sources

• Central Bank of the UAE, Regulations Regarding Mortgage Loans (Circular 31/2013), as amended by Resolutions 96/2019 and 31/2/2020, consolidated 8 April 2020, Articles 2 and 3, checked 14 November 2026: rulebook.centralbank.ae
• Dubai Land Department, mortgage registration, site updated 10 November 2026, checked 14 November 2026: dubailand.gov.ae
• Gulf News, mortgage lenders lower the completion requirement for off-plan projects, updated 12 June 2023: gulfnews.com
• Gulf News, DAMAC and ADIB off-plan financing deal, updated 4 March 2025: gulfnews.com
• Khaleej Times, UAE banks roll out off-plan financing options, 26 August 2026: khaleejtimes.com
• Bayut, total cost of buying property in Dubai (valuation and arrangement fees), updated 20 October 2026: bayut.com
• Our analysis of the payment plans and price checks of the projects listed on this site in November 2026 (price checks against DLD sales through 9 November 2026), and of the DLD project register as of 11 November 2026