Finance & Mortgage · 7 min · 2026-10-23

Mortgage at Handover: Financing the Balance of an Off-Plan Unit

At completion, the remaining balance of an off-plan purchase can be financed against the ready property. The valuation at that date decides how much you can borrow.

The short answer

At handover, you can finance the remaining balance of an off-plan purchase with a mortgage on the ready property. The lender commissions an independent on-site valuation at that time (CBUAE "Regulations Regarding Mortgage Loans", Article 2.5), and the maximum loan follows the LTV rules for completed properties in Article 3.2: up to 80% for an expatriate's first home below AED 5M, 60% for a second or investment property, 85% / 65% for UAE Nationals. Your income must pass the 50% debt burden test (Article 3.1). Each lender then applies its own policy within these limits.

Why handover changes the rules

While the property is under construction, any mortgage is capped at 50% of the value for all buyers (Article 3.2 C). Once the property is complete and handed over, it is no longer an off-plan purchase for the lender, so the ready-property LTVs apply. How a lender classifies a property at the exact moment of handover (before or after the title deed is issued) is its own policy, so ask early.

Step by step

1. Check your SPA: the amount due at handover, the deadline, and the developer's process for receiving payment from a lender.
2. Apply to a lender a few months before the expected handover, with your income documents. Ask how long an approval remains valid; each lender sets this.
3. Valuation: the lender's independent valuer inspects the ready property (Article 2.5). The valuation cannot include expected future price appreciation.
4. Offer and disclosure: the lender gives you the loan terms, fee schedule, total cost of the loan and pre-payment policy (Article 4).
5. Payment and registration: the lender pays the developer, and the mortgage is registered with the DLD as a first-class mortgage in the lender's name (Article 3.7). Registration costs 0.25% of the loan plus admin fees.

Worked example: AED 720,000 to finance at handover

Assumptions, all examples: purchase price AED 1,200,000; example plan of 40% during construction (AED 480,000 already paid) and 60% at handover (AED 720,000 to finance); expatriate; example rate 4.5%; 25 years.

How the valuation changes the maximum loan

Amounts in AED. The cash gap is the part of the AED 720,000 balance the lender cannot cover. In the third row, an investor would need AED 60,000 more from their own resources (Article 2.4: not from personal loans or credit cards).

Lenders differ on whether they apply the LTV to the valuation, to the price, or to the lower of the two. This example applies it to the valuation; ask your lender which basis it uses.

The monthly payment

Payment = P·r / (1 − (1 + r)^−n), with P = 720,000, r = 0.045/12, n = 300.

The income side

Under the 50% DBR rule, total monthly debts including the stressed payment must stay within half of your gross income and regular income. For the AED 4,861 stressed payment alone, that means at least AED 9,722 a month of eligible income, before other debts and household expenditure (Article 2.3). The loan must also stay within 7 times annual income for expatriates (Article 3.4).

If you already have an off-plan mortgage

If a lender has been financing your purchase during construction, it continues to release the remaining funds against milestones, up to the 50% cap (Article 2.1). Moving to another lender at handover is a refinancing; Article 4 states there should be no impediment to refinancing and caps the charges at the actual break cost and/or the fees in Regulation No. 29/2011. Compare the figures with the mortgage buyout calculator.

Prepare for a lower valuation

• Keep a cash reserve in case the valuation is below the price.
• Ask your lender, before handover, how it treats a valuation below the purchase price.
• Read our guide to property valuation for mortgages.

FAQ

Can I get 80% at handover on an off-plan purchase?

If the property is complete, it is your first home, you are an expatriate and the value is below AED 5M, the regulatory maximum is 80% of the value. You only need to borrow the remaining balance, and each lender may apply a lower ratio.

What if my income changes before handover?

The lender assesses your income at the time of the application. Affordability cannot rely on an expected increase in earnings (Article 2.3).

Is a post-handover plan an alternative?

Yes, if your developer offers one. Compare both in post-handover plan vs mortgage.

Where does the lender's payment go?

To the developer, according to the payment instructions for the project. See escrow accounts for off-plan.

Check how much you can borrow on the ready property with the LTV calculator and read the off-plan mortgage rules.

Calculators for this guide: Mortgage calculator Dubai & UAE · Dubai mortgage for non-residents · Off-plan calculator Dubai

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