The real estate market in the UAE has been evolving rapidly, and one of the most significant updates is the introduction of off-plan property mortgages by several banks. This development is a game changer for investors and homebuyers looking for flexible financing options for properties still under construction.
What is an Off-Plan Property Mortgage?
An off-plan mortgage allows buyers to secure financing for properties that are yet to be completed. Traditionally, buyers had to rely on developer payment plans, but now, select banks offer mortgages based on market value rather than the original sale price.
New Mortgage Policy Updates
According to recent banking policy revisions, off-plan financing is now available for secondary market transactions. This means that buyers can get loans based on the current market value, making it easier to invest in high-demand projects.
Applicable Developers
The revised mortgage policies apply only to select developers, including:
- Emaar
- Nakheel
- Meeras
- Dubai Properties
- Wasl Properties & Jumeirah Golf Estate
Key Conditions
- Maximum Loan Cap: Up to AED 10 million per transaction.
- Payment Process: The payment to the seller must be routed via a CBD account.
- Maturity Age: Expats can now apply for mortgages up to 70 years of age, compared to the previous limit of 65 years. UAE nationals can continue with the existing policies.
- Self-Employed Borrowers: No LTV (Loan-to-Value) reduction for those in restricted industries, providing more financing opportunities.
- Extended Residential Mortgages: Now applicable to a wider range of developers, including Damac, Sobha, and Azizi, alongside the previous government-backed projects.
Benefits of Off-Plan Mortgages
1. Higher Market Value Financing
Unlike previous policies that limited financing to the original sale price, buyers can now secure loans based on the property’s current market value, potentially leading to better loan-to-value ratios.
2. Improved Cash Flow Management
Instead of making large upfront payments, buyers can opt for mortgages, distributing costs over a more extended period.
3. Access to Premium Developments
With financing now available for top-tier developers like Emaar and Nakheel, buyers can invest in high-end properties with greater ease.
4. Increased Investment Opportunities
This shift makes real estate investment more accessible, allowing buyers to capitalize on market trends and potential appreciation.
Final Thoughts
The introduction of off-plan property mortgages is a significant milestone in the UAE’s real estate financing sector. It offers homebuyers and investors a new level of flexibility, allowing them to own premium properties with structured financial backing.
If you’re considering investing in off-plan properties, now is the perfect time to explore these new mortgage options. Contact a bank or mortgage advisor today to learn more about how you can benefit from these policy updates.
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Best Mortgage broker in UAE for Off-plan properties Betterway Mortgage
developer sites : Emar , Nakheel , Meeras , Dubai Properties , Wasl Properties & Jumeirah Golf Estate
Thinking about investing in off-plan properties? Contact us today to explore your mortgage options!
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