Down payments for UAE mortgages cannot be financed through personal loans

Under Central Bank Board of Directors' Resolution No. 96/By Circulation/2019 Amending Circular No. 31/2013, the down payment required for mortgage financing in the UAE must be sourced from the borrower's own resources and cannot be financed through personal loans or credit cards. This requirement ensures the borrower has an appropriate level of financial interest in the property. The Central Bank's regulations separately permit personal loans for other purposes, subject to eligibility and debt-burden requirements, but using personal-loan proceeds for a mortgage down payment would not comply with mortgage-lending regulations. Maximum Loan-to-Value ratios are also prescribed: for expatriates purchasing a first owner-occupied home valued at Dh5 million or less, the maximum LTV is 80%; for properties above Dh5 million, it is 70%. For second or subsequent properties, the maximum LTV is 60%. For off-plan purchases, the maximum LTV is 50% regardless of property value or purchaser category.