Financing the final 20/80 or 40/60 payment
On many payment plans most of the price falls due at handover. If you would rather not pay it from your own funds, the payment can be financed with a mortgage. The bank pays the developer, you receive the Title Deed with the bank's mortgage, and you repay monthly.
Who it is for
- You bought off-plan on a 20/80, 40/60 or similar plan
- The building is completing and the developer has issued the final call
- You want to keep your own capital
How it works
- 01
Pre-approval in advance
It is best to start before the developer issues the final invoice. That leaves time to choose a bank and avoid late penalties.
- 02
Developer statement of account
We get a statement showing what has been paid, what is outstanding and which handover fees are due.
- 03
Valuation of the completed unit
The bank values the property. The loan is based on the valuation, not just the contract price.
- 04
Payment and registration
The bank pays the developer, you receive the keys, and the Title Deed is issued with the bank's mortgage.
What to watch
- The valuation may come in below the contract price. The bank then lends less and you cover the gap.
- Late payment penalties on the final instalment. The earlier you start, the lower the risk.
- Handover also brings fees and service charges. Include them in your budget.
Documents
- Passport, UAE visa and Emirates ID
- Proof of income
- Bank statements for 6 months
- SPA / Oqood and payment plan
- Developer statement of account
The bank may ask for other documents too.
From practice
The V Tower: rent covers the instalments
My clients bought in The V Tower on a plan of 50% during construction and 50% over four years after handover. We found a tenant before the furnishing was even finished, and the rent covers the post-handover payments.
This information is for guidance only. Final mortgage terms are set by the bank after reviewing your documents.
Other scenarios
- 01Mortgage buyoutMove your mortgage to another bank, or buy a property the seller still has a mortgage on
- 02Instalments and penalties → NOCThe buyer's mortgage clears the developer balance and penalties so the NOC can be issued
- 03Non-residentsTerms for non-residents, and how a UAE job changes them
- 04Equity releaseBorrow against your property, even if it is already mortgaged