Almost every off-plan launch is sold on a payment plan: a schedule of how much you pay at booking, during construction, at handover and sometimes after it. Two projects at the same price can ask for very different amounts of cash at very different times, so the plan deserves as much attention as the price itself. This guide explains how plans are built, how to compare them, and how a mortgage can cover part of the balance.
How is a payment plan built?
- Booking amount. Due when you reserve the unit, usually with the SPA.
- Construction instalments. Due on set dates, or when the building reaches set stages.
- Completion payment. The balance due when the unit is finished and you take the keys.
- Post-handover instalments (some plans only). Part of the price spread over an agreed period after handover, paid to the developer.
The registration fee is paid on top of the plan, usually at signing. See the true cost of buying off-plan.
How do you read a split like 60/40?
A 60/40 plan means 60% of the price is paid before handover (booking and construction instalments) and 40% on handover. A 70/30 plan puts more into the construction period; a 40/60 plan leaves more for completion.
Illustrative example, not a real unit: on a price of AED 1,000,000, a 60/40 plan means AED 600,000 paid before handover and AED 400,000 due on handover.
Is a plan date-linked or construction-linked?
Date-linked instalments fall due on calendar dates, whatever happens on site. They are easier to budget for. Construction-linked instalments fall due when the developer reaches a stage, such as 20% or 50% completion. They tie your payments to visible progress.
For a stage-linked payment in Dubai, you are entitled to confirmation of the completion percentage, through a letter from the project consultant approved by the Land Department, before you pay. You can also follow progress through the Land Department’s project status service.
Every payment, under any plan, goes to the project’s escrow account. A broker marketing the project must also pay sale proceeds into that account, never its own. How escrow protects you, and its limits, are covered in how to buy off-plan.
How do post-handover plans work?
A post-handover plan lets you take the keys before you have paid the full price. The balance is paid to the developer over an agreed period. It is a developer instalment arrangement, not a bank loan.
- What it can help with. Less cash before the keys, and the chance for rent to cover part of the instalments if you let the unit.
- What to weigh. The total price can be higher than on a shorter plan. You owe the instalments whether or not the unit is let. A bank may count them as a commitment when you apply for other finance.
- What to read. When the title deed is issued, whether the developer keeps a charge over the unit until the last payment, and what happens if you want to sell before the plan ends. These terms are set in each project’s SPA.
How do you review plans across projects?
- Cash before keys. Booking, instalments and fees together.
- Cash at keys. The completion payment, and how you will fund it: savings, a sale, or a mortgage.
- Timing. A later handover spreads the same percentage over more months. You can filter launches by handover year, for example handover in 2027.
- Resale rules. Developers usually require a share of the price to be paid before they allow a resale. A front-loaded plan reaches that point sooner. See selling before handover.
Can you use a mortgage with off-plan?
The UAE Central Bank sets limits that every lender must follow. For property bought off-plan, the maximum loan-to-value is 50%, whatever the buyer’s category, the purpose or the value. Banks then set their own policies on top, including which developers and stages of construction they will lend on.
Borrowing at handover
Many buyers pay the construction instalments from their own funds and use a mortgage for the completion payment. Once the property is complete, the Central Bank’s limits for completed homes apply:
| Buyer | First home, up to AED 5M | First home, above AED 5M | Second or investment home |
|---|---|---|---|
| Expatriate | 80% | 70% | 60% |
| UAE national | 85% | 75% | 65% |
Affordability limits also apply: total monthly debt repayments cannot exceed 50% of income, and the loan cannot exceed 7 times annual income for expatriates (8 times for UAE nationals). The bank sizes the loan on its own valuation, not on your purchase price, so keep a cash buffer in case the valuation comes in lower.
If you live outside the UAE
The Central Bank rules distinguish UAE nationals from expatriates; they do not set a separate category for non-residents. In practice, banks decide whether to lend to non-residents at all and on what terms, and many are more conservative than the regulatory maximum. Ask lenders early, ideally before you reserve. Non-resident lending policies vary by bank. See buying from abroad.
FAQ
Is a post-handover plan the same as a mortgage?
No. It is an instalment arrangement with the developer under your SPA. A mortgage is a bank loan registered with the Land Department.
Can I get a mortgage before the building is finished?
Some banks lend on approved off-plan projects, up to the Central Bank’s 50% cap. Many buyers wait until handover, when higher limits apply to completed homes.
What happens if I miss an instalment?
Your SPA sets out late payment charges and the developer’s remedies. Read that clause before you sign and keep a buffer for every payment date.
What if handover is delayed on a date-linked plan?
You may still owe instalments on their dates. Check how the SPA treats a delay before choosing between date-linked and stage-linked plans.
