Financing An Off-Plan Property Purchase

While making a purchase is usually uncomplicated, many people need help getting a mortgage when buying off-plan. Lenders’ reluctance to finance off-plan acquisitions is common. As fewer sellers are willing to sell to you, the interest rate you wind up paying may be higher.

Another thing to consider is how long the offer is good if you locate an off-plan mortgage that works for you. The majority will remain on the table for six months, which is normally not an issue. Nevertheless, because of the nature of purchasing off-plan, you may be unable to move into your new house for up to six months.

Many lenders will continue their offer in this situation. However, you may be asked to reapply. You’re probably under contract by now, so it’s time to start worrying and wearing you out. That’s why having a firm building schedule is crucial before signing any contracts.

It would help if you did all in your power to include a termination provision in your contract with the developer before signing anything. If funding the purchase becomes impossible because of building delays, this should guarantee that you are entitled to a full refund of your deposit.

Lenders will want to see an appraisal just as they would for any other property acquisition. The main difference is that when purchasing off-plan, they will want a second opinion on the property’s value when construction is finished to ensure they don’t overpay.

If the final value is lower than the second one, you must decide whether to appeal the judgment, make up the difference, or negotiate with the developer. There is no perfect solution here; rather, much will rely on the severity of the deficit. If this occurs, it is wise to seek out more guidance.

Finally, if you are a first-time buyer considering buying off the plan, remember that you can off-plan properties in dubai.