This might give you more flexibility and certainty over your finances
Buying an off-plan home usually comes with one big question: how are you going to pay the final chunk when the keys are ready?
Well, Abu Dhabi has just made that part of the process a little easier.
Aldar has completed the capital’s first mortgage registration for an eligible off-plan property under a new framework introduced by the Abu Dhabi Real Estate Centre (ADREC), potentially giving homebuyers more flexibility when it comes to financing their properties before they are handed over.
So, what does this actually mean?
Previously, buyers purchasing off-plan property would typically arrange their mortgage closer to completion and handover.
Under the new framework, eligible buyers can secure mortgage financing while their property is still under construction.
There is one important condition: buyers must have already paid 50 per cent of the property’s purchase price.
Once that milestone has been reached, the buyer can arrange a mortgage against the off-plan property, with the bank financing the remaining instalments as well as the final payment due at handover.
In simple terms, if you’ve already paid half of your home, you may be able to get the mortgage sorted sooner rather than scrambling to arrange finance when the development is finally ready.
Why should buyers care?
For anyone buying off-plan, having the financing locked in earlier could make budgeting considerably easier.
Rather than waiting until completion to find out what mortgage terms are available, buyers can potentially arrange their financing during the construction period.
That means greater certainty around repayments, rates and overall funding, while also allowing buyers to keep more cash available rather than paying everything as the property approaches handover.
It also means one less major financial job to tackle when you’re getting ready to collect the keys.
The new system allows the financing bank to be formally recorded on the mortgage registration certificate before the property is handed over, providing greater clarity around the arrangement for buyers, developers and banks.
Aldar leads the way
Aldar is the first developer in Abu Dhabi to complete a registration under the new system, working with Abu Dhabi Commercial Bank (ADCB) as the mortgage provider for the initial transactions.
The framework follows UAE Central Bank regulations, which require buyers to have paid at least half of the property’s value before they can qualify for off-plan mortgage financing.
Importantly, this isn’t limited to one particular Aldar development or a one-off arrangement. The service is designed to operate across the Abu Dhabi market for participating financial institutions that meet the relevant requirements.
What about getting a mortgage?
Aldar buyers can also make use of Home Finance by Aldar, the developer’s in-house mortgage advisory service.
The service doesn’t charge customers a fee and allows buyers to explore financing options from a panel of participating banks.
Essentially, it takes some of the legwork out of comparing mortgage options and finding a solution that fits their circumstances.
For anyone considering an off-plan purchase, the big takeaway is simple: you no longer necessarily have to wait until your home is ready before getting your mortgage in place.
If you’ve reached the 50 per cent payment milestone, the new framework could give you more control over how and when you arrange the remaining finance, potentially making the journey from off-plan purchase to getting the keys a little smoother.
