If you are planning to buy property in the UAE, you might be wondering if you can take out a personal loan to cover the required down payment. According to UAE Central Bank regulations, the answer is a firm no. Financial guidelines explicitly state that a down payment must be funded entirely through the borrower’s own personal resources. Using funds obtained from personal loans, credit cards, or other debt facilities to bridge this gap is prohibited to ensure that homeowners maintain a genuine and stable financial stake in their properties.

While personal loans remain a legitimate financial tool in the UAE for other purposes—subject to standard debt-burden and income criteria—they cannot be used to satisfy mortgage equity requirements. In addition to these sourcing rules, the Central Bank mandates strict Loan-to-Value (LTV) ratios. For instance, expatriates buying their first home can typically borrow up to 80% for properties under Dh5 million, leaving the remaining balance to be settled from their own savings. Off-plan properties carry even stricter requirements, often necessitating a 50% down payment from the buyer's own capital. Potential buyers should always rely on their own verifiable savings for these contributions to ensure full compliance with regulatory standards.