On this page
- How handover financing works
- Why the valuation decides
- Four scenarios in AED and CAD
- A timeline that leaves room
- Plan B if the loan is late or short
- What is different when you live in Canada
- Frequently asked questions
How handover financing works
During construction you pay the developer in instalments. Official rule A mortgage on a property that is still under construction is capped at 50 % of its value.[1] Most off-plan buyers therefore pay their instalments in cash and plan to finance the balance once the unit is complete. At that point the bank treats the purchase like the financing of a finished property: income check, valuation, approval, then payment to the developer and registration of the mortgage with the Dubai Land Department.[2]
Bank practice Not every lender finances every building or every developer at handover, and non-resident programs are narrower still. Checking early which lenders accept your building is part of the work.
Why the valuation decides
Bank practice Many lenders lend a percentage of the lower of the purchase price and their own valuation. Off-plan prices are fixed years before completion; the valuation reflects the market and the finished product on the day. If the market has risen, the valuation usually supports the price. If it has softened, or if the unit is valued below what you paid, the loan shrinks and the gap is yours.
Four scenarios in AED and CAD
Worked example Price AED 1,800,000, 40 % paid during construction (AED 720,000), balance at handover AED 1,080,000. The gap is the part of the balance the loan does not cover, converted at the Bank of Canada rate of 9 October 2026.[3][4]
| Scenario | Maximum loan, AED | Gap to fund, AED | Gap, CAD |
|---|---|---|---|
| Valuation at price, 65 % | 1,170,000 | 0 | 0 |
| Valuation AED 1.7 million, 65 % | 1,105,000 | 0 | 0 |
| Valuation at price, 50 % | 900,000 | 180,000 | 69,946 |
| Valuation AED 1.7 million, 50 % | 850,000 | 230,000 | 89,376 |
On top of any gap come the costs of the loan itself: mortgage registration, valuation, the bank's processing fee and utility connection, in our model about AED 19,150 for this balance. For off-plan purchases the 4 % transfer fee is paid when the contract is registered in Oqood, the Dubai Land Department's register for off-plan sales, so it is usually behind you by handover. Title deed issuance and the developer's handover charges, such as advance service charges, still come on top. Check your own payment record.
The lesson of the table: with 65 % financing this buyer is covered even after a lower valuation; with 50 % the gap is between AED 180,000 and 230,000. Which of the two you get is the bank's decision, so plan for the larger gap. 65 % is only possible where the bank treats the purchase as a first home; if it classes the apartment as a second home or investment property, the Central Bank ceiling of 60 % applies, and many lenders go lower for non-residents.
A timeline that leaves room
| When | What to do |
|---|---|
| Six months before the expected handover | Check that your income and debts still fit, and which lenders finance completed units in this building. Update your documents. |
| Three to four months before | Collect documents and speak to lenders. Apply for the pre-approval about 60 days before the expected completion notice, so that it is still valid at valuation. |
| Completion notice from the developer | The clock starts. Ask the developer for the handover documents the bank needs and the exact amount due. |
| Bank valuation of the finished unit | This number decides the loan. If it comes in low, your reserve covers the gap. |
| Final approval and loan documents | The bank pays the balance to the developer; the mortgage is registered with the Dubai Land Department. |
| Handover and title | Keys, deficiency inspection (snagging), utility connection. Your power of attorney should be in place if you are not in Dubai. |
Bank practice A pre-approval is typically valid for around 60 days. That is why it should be timed to the completion notice, not to the day you signed the off-plan contract.
Plan B if the loan is late or short
- A cash reserve for the larger of the gaps in the table, held in a form you can move quickly.
- A second lender identified in advance, in case the first declines the building or your profile.
- The contract terms: what the developer charges for late payment and whether an extension is possible.
- A post-handover payment plan, if your contract includes one or the developer agrees to one, as an alternative to part of the loan.
- Your Canadian liquidity: if home equity is your reserve, set it up before you need it, with a licensed Canadian mortgage professional.
What is different when you live in Canada
Three things. First, your income is assessed again at handover in a currency that has moved since you signed; a weaker Canadian dollar lowers your income in dirhams. Second, your circumstances in Canada may have changed: a new job, a renewed Canadian mortgage at a higher rate, a new car loan. Each counts. Third, documents from Canada take longer, especially a power of attorney that has to be authenticated in Canada and legalized for the UAE. Read Your Canadian mortgage, HELOC and other debts and the signing section of the guide for Canadians, and run your figures in the cash-to-close calculator. Our general page on off-plan and handover finance covers the parts that do not depend on where you live.
Frequently asked questions
Can I get the handover mortgage approved when I sign the off-plan contract?
What happens if the bank is not ready by the developer's deadline?
Does the off-plan 50 % limit apply at handover?
Is a post-handover payment plan an alternative?
Do I have to fly to Dubai for handover?
Sources
- Central Bank of the UAE, Regulations Regarding Mortgage Loans: maximum loan-to-value for expatriates 80 % on a first home under AED 5 million, 70 % above it, 60 % on a second or investment property and 50 % on off-plan property; debt burden ratio up to 50 % of gross income; maximum tenor 25 years; valuation required before the loan. Non-residents are not defined as a separate category. rulebook.centralbank.ae
- Dubai Land Department, Request for Mortgage Registration: 0.25 % of the loan plus AED 270. dubailand.gov.ae
- Bank of Canada, daily exchange rates (USD/CAD daily average, read automatically through the Bank's Valet interface): the CAD figures on this page are recalculated from the latest published rate; the figures in the page source use 1 USD = 1.4271 CAD (9 October 2026). bankofcanada.ca
- Central Bank of the UAE, monthly exchange rate table: US dollar at AED 3.6725 (the dirham is pegged to the US dollar). Together with the Bank of Canada rate this gives the value of one Canadian dollar in dirhams used on this page. centralbank.ae
Initial financing assessment
If you live in Canada, or are a Canadian living elsewhere, and are looking at a property in Dubai, fill in this short form. We will tell you which questions need answering before a lender is approached. This is not a credit approval or an offer of finance, and it commits you to nothing. You will hear from us within one business day at the latest.