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Mortgage for off-plan properties

Can expats buy off-plan property with a mortgage in Dubai?

Buying an unplanned property in Dubai has several benefits. If they are acquired as early as possible, the price is usually much lower. Properties without a plan make it easier for people on a tight budget to enter the real estate market and allow investors to maximize their returns. Despite its immense popularity, financing is a component of buying an unplanned property that most buyers are unsure of.

Can I get a mortgage on an unplanned property?

Yes. Of course, buyers of most unplanned properties in Dubai can get a mortgage. As with any mortgage, certain requirements must be met; however, these are generally easy to come across and comparable to those of a finished house.

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How much money does it take to buy an unplanned property?

The loan amount you can take to purchase an unplanned property depends on the present value of the property. This is the loan-to-value ratio (LTV). Regardless of whether you are a citizen or reside overseas, the loan-to-value ratio for all unplanned properties is 50%.
So, if you want to buy a piece of land at the current price of AED 1 million, you must first raise AED 500,000 to get a loan.
However, if you think that increasing 50% of the property’s value will be difficult, then you shouldn’t do it this way. There are other developers with more attractive offers that attract investors and even first-time buyers.

How much money can I borrow for an unplanned property?

As most buyers know, the maximum loan-to-value ratio for a finished home is 80%.
This essentially means that the bank, when buying a property, for example. B. $ 1,000,000 can only lend up to 80% of this amount, which is $ 800,000.
The maximum loan-to-value ratio for an unscheduled purchase is 50%. This percentage applies to UAE residents and non-residents, as well as UAE citizens. As in the previous figure, the bank will only lend up to 500,000 for a $ 1,000,000 property, or 50% of the purchase price.

Which banks finance the purchase of an unplanned property?

When buying an unplanned property, the options are slightly more limited than buying a finished property, where the buyer can use virtually any bank for financing.
This is because not all banks offer financing for unplanned property purchases, and when they do, they are very selective about which projects they actually finance. In general, banks only lend to homes built by developers such as DP and Emaar Properties. Occasionally, however, they also approve project loans from some private developers, so all is not lost in these cases.

Are there any costs?

Fees still apply to unplanned homes, but developers are constantly looking for ways to make the transaction more compelling to attract investors. Many developers offer to pay a portion of the DLD property registration fee to attract customers.
Often developers pay the full amount, which is 4% of the property value. For example, by paying the fee, your developer can save you up to AED 40,000 on a property worth AED 1 million. You will still have to pay up to AED 5250 to the RERA to obtain an Oqood certificate confirming that the property is registered in your name.

Can you get a mortgage and free up the capital at the same time?

You have the option of both taking out a loan and freeing up capital for your home. However, to fully draft this agreement, you will need the assistance of a mortgage broker.
You can pay the final payment you owe the developer upon delivery by releasing capital and taking out a mortgage. So you have the money you need to invest in other properties or to pay for other obligations.
The mortgage interest rate and the amount of principal to be issued depend on a number of variables. If this option interests you, you should contact Expat Mortgage so they can help you with this process.

How can I get an off-plan mortgage approved?

In many ways, approving a mortgage on an unplanned property is similar to approving a finished property. The bank will use its standard assessment criteria to decide whether to grant a loan, provided the developer is on its list of approved developers. The eligibility requirements for a loan are similar to a mortgage on a finished property and can vary from bank to bank.

Aside from that, getting a mortgage on a property is off the beaten track just like any other mortgage. As an emigrant you need:
– A photocopy of your passport
– A copy of your UAE residence permit and your current address
– Financial documents such as bank statements and pay slips

You can increase your chances of being accepted:
– keep track of your accounts
– Keep your credit card balances low
– Seek assistance from a mortgage broker

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