- State Bank of Pakistan has announced the scheme for subsidized Housing Finance, followed by latest IH&SMEFD Circular No. 03 of 2021 dated March 25, 2021 with a view to promote economic development, employment generation and social wellbeing in the country. Mera Pakistan Mera Ghar shall be available to mid and low-income strata of population with access to institutionalized housing finance to meet their housing needs. In order to facilitate the availability of long-term affordable funding for housing, State Bank of Pakistan (SBP) has shared guidelines to introduce a “Subsidized Scheme for up to 5 marla, 5 marla and 10 marla” for Home Finance whereby one individual can have subsidized housing finance facility under this scheme only once.
- All men/women holding valid CNIC
- First time home owner
- Salaried as well as non-salaried individuals can apply
- One individual can have subsidized house finance facility under this scheme only once
- 25 to 60 years of age (at the time of maturity should not be more than 60 years in case of salaried and 65 years in case of non-salaried)
- Having per month net disposable income Minimum Rs.25,000/-.
- There is no requirement of minimum tenure for job/ business of a customer
1) House/Apartment Purchase This type of finance is meant for the first purchase of a newly constructed housing unit or apartment, which is not more than one year older from the date of application. 2) Construction of House This type of finance is extended to customers who intend to construct a housing unit on the plot they already own. Further, financing can be both for purchase of land and construction, provided it should not breach the prescribed limit 3) Purchase of Land and Construction of House thereon This type of finance is extended to customers who need financing for the purchase of land and construction of a house on this land provided other terms and conditions, including the maximum price of the housing unit and maximum amount of financing are not breached. 4) Expansion / extension This Financing will be available for expansion / extension of existing housing unit, provided the housing unit after expansion/extension falls within the criteria specified under the facility.
Type of Facility This will be a long-term finance facility with monthly instalments spread over the term of finance, secured through charge creation on the property in favor of the bank. Type of Financing · House/Apartment Purchase · House Construction · Purchase of Land and Construction of House · Expansion / extension Tenor of Financing Minimum tenure of the financing under this scheme shall be 5 years. Whereas maximum financing tenure shall be up to 20 years on the choice of the customer Maximum Size of Housing Units a. Tier 1 (T1) (NAPHDA Projects): i) House up to 125 square yards (5 Marla) with maximum covered area of 850 square feet and ii) Flat/apartment with maximum covered area of 850 sq ft b. Tier 2 (T2) (Non-NAPHDA Projects): i) House up to 125 square yards (5 Marla) and ii) Flat/apartment with maximum covered area of 1,250 sq ft. c. Tier 3 (T3) (Non-NAPHDA Projects): i) House up to 250 square yards (10 Marla) ii) Flat/apartment with maximum covered area of 2,000 sq. ft. Maximum Price of Housing Units Maximum Price (Market Value) of a single housing unit at the time of approval of financing, should be as under: · Tier 1 (T1) – Rs. 3.5 Million (NAPHDA) · Tier 2 (T2) – No Cap · Tier 3 (T3) – No Cap Amount of Financing The Maximum size of the finance is as follows: · Tier 1 (T1) – Rs. 2.7 Million · Tier 2 (T2) – Rs. 6.0 Million · Tier 3 (T3) – Rs. 10.0 Million Monthly Net Income Minimum Rs.25,000/- Co-Applicant Income Clubbing 100% Clubbed Up to 04 co-applicants are allowed for income clubbing from multiple sources Debt Burden Ratio Maximum up to 45% Debt to Equity Ratio · Tier 1 (T1): Maximum up to 90% · Tier 2 (T2): Maximum up to 90% · Tier 3 (T3): Maximum up to 85% Selection of Property Criteria No geographical restriction shall be applicable Pricing / Subsidy Profit Rate Customer Pricing Bank Pricing Tier 1: First 5 Years = 3% Next 5 Years = 5% 1Y KIBOR + 2.5% Tier 2: First 5 Years = 5% Next 5 Years = 7% 1Y KIBOR + 4% (Spread may vary) Tier 3: First 5 Years = 7% Next 5 Years = 9% 1Y KIBOR + 4% (Spread may vary)
or as communicated by SBP from time to time. For finance tenors exceeding 10 years, market rate will be applicable for the period exceeding 10 years.
Documentation Documents in excess of standard checklist of documents shall not be obtained from applicant
 NAPHDA – Naya Pakistan Housing & Development Authority
- Bank’s permanent staff is not eligible to apply under Mera Pakistan Mera Ghar. However; staff on third-party and contractual employees of banks who are below officer grade and are not eligible to avail staff housing finance are eligible under this segment.
- In order for house/flat/apartment to be eligible for particular tier, all criteria under that tier has to be met. If any of the criteria exceeds prescribed limits financing will fall under higher tier
- Both Spouse who are working can apply under this scheme. However, only one of the spouse can avail financing under the scheme
- The financing tenor is up to 20 years with the flexibility on the choice of the customer.
- NRP holding CNIC/SNIC is eligible as main applicant or co-applicant. However, all relevant regulations including Foreign Exchange Regulations are to be adhered.
- Designated Branches will entertain the prospect customers whereas Non-designated branches will guide Prospect customers to their nearest designated branch.
Informal Income Person