Guiding you step-by-step towards affordable home ownership in Pakistan.
1. How can first-time homeownership be established?
PFIs will obtain an undertaking from the borrower. If later found false, subsidy recovery and penalties will apply.
2. Can the income of co-borrowers be clubbed?
Yes, PFIs may allow income clubbing as per their internal criteria.
3. Can a borrower avail financing above Rs. 3.5 million?
Yes, borrowers can now avail financing up to Rs. 10 million.
4. Is there SBP guidance for informal income estimation?
Banks should use their own income proxy models as per IH&SMEFD Circular No. 07 of 2021.
5. Is there a maximum property value limit?
No, but financing will follow scheme terms.
6. Is there any age limit?
No age limit. Banks assess based on internal policies.
7. Will bank pricing change after 10 years?
No. It remains One-Year KIBOR + 3% for the remaining tenure.
8. Can bank staff apply?
Yes, if not eligible under HR policy, but must be on standard terms and arm’s length basis.
9. Can financing be used for renovation or expansion?
No. Only for:
10. Can the loan be paid off early?
Yes, anytime without prepayment penalty.
11. Is there risk coverage?
Yes, 10% first-loss risk coverage is provided.
12. Can loan tenure be less than 20 years?
Yes, 20 years is the maximum limit.
13. Is there a minimum loan tenure?
No minimum tenure.
14. Will subsidy apply if tenure is less than 20 years?
If tenure ≥ 10 years → subsidy for 10 years.
If tenure < 10 years → subsidy for full loan period.
15. Can house size exceed 10 marlas?
No.
16. Can financing be used to purchase a plot?
Yes, only if construction is also included.
17. Is subsidy available during construction?
Yes, on disbursed amount and within the 10-year subsidy period.
18. Is there a covered area requirement?
Yes, House up to 10 Marla/2720sq.ft and Flat up to 1500 sq. ft.
19. What is the Debt Burden Ratio (DBR)?
As per SBP housing finance regulations.