Developer Financing

Developer financing is credit extended directly by property developers to buyers, typically featuring extended payment plans, lower down payments, and no interest charges, serving as alternative to bank mortgages particularly for off-plan purchases.


Financing TermsTypical Offer
Down payment10-20% vs 25% bank requirement
Interest rate0% explicit (premium in price)
Term length3-7 years post-handover
Credit checksMinimal or none
Income verificationLess stringent
Developer BenefitsRationale
Sales velocityExpands buyer pool
Price premium5-10% above cash price
Buyer commitmentStructured payments create obligation
Buyer commitmentEffective in slow markets
Buyer ConsiderationsFactor
Cost comparisonTotal vs bank financing
FlexibilityDeveloper terms often rigid
Credit preservationNo bank debt impacts future borrowing
Completion riskPayments continue regardless of delivery

Related Terms

Off-Plan PropertyAssignment of Contract (Off-Plan Resale)Deferred Payment PlanDeferred Payment PlanAssignment of Contract (Off-Plan Resale)Assignment of ContractOff-Plan PropertyDown PaymentPayment Holiday

RERA licensed advisors

Banner Image

Free expert advice

Get property recommendations matched to your goals. No pressure. No commitment.