Many people wonder whether it is possible to take out a mortgage in Dubai, and how to do it. In the UAE, the process is much simpler than in Europe: you can buy property online, and in addition to mortgages, developers offer interest-free instalments, which makes buying a home even more affordable. About 70% of buyers prefer this method of payment.
While mortgages in Dubai are issued by banks, the instalments are offered by the developer. It is available only for the primary property market, except when it comes to the sale of objects in the secondary market in projects under construction. In this case, the new owner can inherit the payment plan of the previous owner.
The instalment periods range from a few months to 8 years and are available to foreigners for both budget and luxury properties.
There are two main types of instalments:
Until completion of construction - the entire amount is paid in instalments until the project is handed over. This is the most common option, the repayment period is usually 3-4 years.
After completion of construction - part of the cost is paid before handing over the keys, and the rest - within a few years after. This format is less common, about 20% of transactions.
Payment plans vary, but the most convenient for the buyer are those that require a low down payment, which reduces the financial burden.
