40/60 or 50/50: read the payment schedule, not just the split
The split tells you when the purchase price is paid. The instalment dates tell you whether the commitment fits your finances.
2 min read
A payment split is not a cash flow calendar. Check whether the reservation is included in the first component and put every dated obligation, including costs outside the price, on one timeline.
What a split usually describes
In a 40/60 structure, 40% of the purchase price is paid before handover and 60% at handover. A 50/50 structure divides those amounts equally. Read the actual schedule: the first component may include the booking payment, and instalments may follow calendar dates or construction milestones.
An example using the same purchase price
For an illustrative AED 2 million home, 40/60 means AED 800,000 before handover and AED 1.2 million at handover. Under 50/50, each component is AED 1 million. These are arithmetic examples, not available offers. They exclude fees and do not establish mortgage eligibility.
Illustration: booking included in a 40/60 plan
| Stage | Share of purchase price | On an AED 2 million price |
|---|---|---|
| Booking, included in the first 40% | 5% | AED 100,000 |
| Later construction instalments combined | 35% | AED 700,000 |
| Handover | 60% | AED 1,200,000 |
| Total purchase price | 100% | AED 2,000,000 |
An arithmetic example only, not an available plan. There are no assumed due dates. Adding a further 5% booking amount to 40% plus 60% would incorrectly total 105% unless a separate contractual charge is specified.
Put every due date on one timeline
List the reservation payment and each subsequent instalment alongside the date it is due. Check whether a booking deposit counts towards the purchase price or is a separate charge. Compare the largest payment with funds you expect to have available then, not with a future resale assumption.
What post handover does and does not mean
A post handover plan moves some payments beyond completion. It is not automatically cheaper, interest free or transferable to a new buyer. Compare the total price, duration, payment conditions and consequences of a missed payment in the actual agreement.
Ask before reserving
Request the complete dated schedule, additional fees, cancellation provisions and any conditions attached to resale. If finance is part of your plan, get a separate lender assessment. A developer payment plan and a mortgage are different commitments.
Test the finance assumptions separately
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Official references and further reading
Use the current official requirements for your own circumstances. Illustrative calculations are not quotes or forecasts. How our guidance is prepared