Financing Options in Dubai Real Estate (2025 Guide for Off-Plan & Secondary Properties)

Mortgages are fast becoming the backbone of Dubai property financing for both off-plan and secondary purchases. Mortgage acquisition rates have steadily been increasing over time as the populatin of the city grows and the demographics change. Banks such as Emirates NBD, Dubai Islamic Bank and Mashreq Bank offer competitive mortgage options for property buyers in Dubai, with mortgage rates hovering around 3.99% at the time of publication.

Types of Mortgages:

• Fixed-Rate Mortgages → Stability in monthly repayments.
• Variable-Rate Mortgages → Riskier but may save money if rates drop.
• Interest-Only Mortgages → Pay interest initially; principal later.

Loan-to-Value Rations (LTV):

• Nationals: 80–85%
• Expats: 75-80%
• Off-plan: 50–60% until completion generally

Rough Example: AED 2,000,000 apartment in Downtown Dubai → Expat qualifies for AED 1.5m mortgage, AED 500k down payment + fees.

For buyers exploring post-handover financing options, see our detailed Post-Handover Payment Plan Guide:

For many international buyers, developer financing Dubai is more attractive than bank loans.

Common Structures:

• 50/50 and 40/60 Plans
• 1% Monthly Payment Plan Dubai
• Post-Handover Financing (installments after receiving keys)
• Interest-Free Plans

Example: AED 1,400,000 Arjan apartment for sale → AED 700k during construction + AED 700k post-handover.

If you don’t meet bank requirements, private lenders or Shariah-compliant financing (Ijara, Murabaha) may be alternatives.

• Higher interest but more flexibility.
• Useful for boutique projects banks won’t finance.

Pro Tip: For investors comparing alternative to mortgages in Dubai, explour our advisory services.

Despite being attractive, off-plan mortgages face hurdles:

• Higher down payments (20–50%).
• Lower LTV (60–65%).
• Construction delays extend financing timelines.
• Banks only support trusted developers.

When considering developer credibility, review and explore our Off-Plan Projects Hub to filter for developers with strong track records. 

Secondary (ready) homes have wider financing access than off-plan.

Options:

• Conventional Mortgages → 75–80% expats, 85% nationals.
• Pre-Approved Mortgages → Faster negotiations.
• Refinancing/Remortgaging → Free up equity, reduce payments.

Example: AED 1,500,000 Al-Furjan resale unit → AED 1.125m mortgage, AED 375k down.

Compare ROI in our Al-Furjan Area Guide for ready property examples.

Challenges:

• Valuation gaps → banks may under-appraise.
• Seller mortgage payoffs can complicate transfers. Contact us to ensure your mortgage sale is executed in a smooth, stress-free fashion.

For a full breakdown of off-plan vs ready property investment, see Guide to Off-Plan Property.

• LTV Ratios (impact upfront cost).
• Interest Rates (fixed vs floating).
• Repayment Tenure (usually max 25 years for mortgages, 5 years for off-plan).
• Property Type (off-plan growth vs secondary income).
• Bank/Developer Reputation.

Unsure which suits your profile. Request a personalized financing quote with LYM Real Estate.