State Bank of Pakistan has revised Government’s Markup Subsidy Scheme for Housing Finance (Mera Pakistan Mera Ghar), vide IH&SMEFD Circular No. 03 of 2021 dated March 25, 2021 with relaxed criteria to increase the opportunity for common person to avail the facility and to promote economic development, employment generation and social wellbeing in the country. Mera Pakistan Mera Ghar shall be available with access to institutionalized housing finance to meet the housing needs. In order to facilitate availability of long-term funding for housing, Allied Bank is offering Housing Finance for house up to 125 Sq. Yards (5 Marla) and up to 250 Sq. Yards (10 Marla), flat/apartment with maximum covered area of 1,250 Sq. ft. and 2,000 Sq. ft. on markup rate as low as 3%, 5% or 7% per annum whereby one individual can have subsidized house loan 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
- 25 to 60 years of age for salaried and 25 to 65 years for non-salaried (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 of minimum Rs.25,000/-
- House/Apartment Purchase
This type of financing is meant for the first purchase of a housing unit constructed during last one year from the date of application*.
- Construction of House
This type of financing is extended to individuals who intend to construct a housing unit on the plot they already own. Further, financing can be both for purchase of land and construction though it should not breach the prescribed tier’s limit
- Purchase of Land and Construction of House thereon
This type of financing is extended to individuals who need financing for purchase of land and construction of house on this land provided other terms and conditions of financing are not breached.
- Expansion / Extension
This type of financing is extended to individuals who need funds for expansion / extension of their existing housing unit provided the housing unit after expansion/extension falls within the criteria specified under the facility. *The requirement of newly constructed housing units during last one year from the date of application will not be applicable till March 31st, 2023 under Tier 2 & Tier 3.
- All men/women holding CNIC
- First time home owner
- One individual can have subsidized house loan facility under this scheme only once
Purpose of Financing
- House Unit and Flat /Apartment Purchase
- House Construction
- Purchase of Land and Construction of House
- Expansion & Extension
Tiers of the Scheme Financing under Tier 0 is available through microfinance banks for financing of housing units under non-NAPHDA projects.* Financing under Tier 1 is available through banks for financing under NAPHDA projects Financing under Tier 2 and Tier 3 is available through banks for financing of housing units under non-NAPHDA projects *Tier 0 is for financing only through microfinancing banks hence ABL will not receive applications for financing under Tier 0. Tenor of Financing Minimum: 5 years Maximum: Up to 20 years, depending up on the choice of the customer Maximum Size of Housing Units Tier 1 (NAPHDA) a – House up to 125 square yards (5 Marla) with maximum covered area of 850 square feet b – Flat /Apartment with maximum covered area of 850 square feet Tier 2 (General Category) a – House up to 125 square yards (5 Marla) b – Flat /Apartment with maximum covered area of 1,250 square feet Tier 3 (General Category) a – House up to 250 square yards (10 Marla) b – Flat /Apartment with maximum covered area of 2,000 square feet 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 capping of price Tier 3 (T3) – No capping of price Amount of Financing Maximum size of the loan 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 Income Minimum Rs.25,000/- Co-Applicant Income Clubbing 100% Income Clubbing Up to 04 co-applicants are allowed for income clubbing from multiple sources Debt Burden Ratio Maximum up to 45% Bank Investment Ratio (BIR / LTV) Tier 1 (T1): Maximum up to 90% Tier 2 (T2): Maximum up to 90% Tier 3 (T3): Maximum up to 85% Geographical Coverage Whole of Pakistan Property Insurance & Life Insurance Property Insurance: Premium will be borne by borrower Life Insurance: Bank will bear the cost of life insurance against the outstanding exposure amount. However, if assurer charges premium over and above agreed rate due to any abnormality observed in medical examination, borrower shall bear the additional premium. Pricing Tier 1 First 5 Years: 3% Next 5 Years: 5% For Loan Tenors exceeding 10 Years: 1Y KIBOR + 2.5% Tier 2 First 5 Years: 5% Next 5 Years: 7% For Loan Tenors exceeding 10 Years: 1Y KIBOR + 4% Tier 3 First 5 Years = 7% Next 5 Years = 9% For Loan Tenors exceeding 10 Years: 1Y KIBOR + 4%
- This will be a long-term loan with monthly installments spread over the term of finance, secured through charge creation on property in favor of bank.
- Financing facility under this segment is only for first time home owner.
- Bank staff, excluding staff of Microfinance banks, are not eligible to apply under this segment.
- Financing will be offered for first purchase / transfer of the housing unit.
- Financing for renovation of existing housing unit will not be allowed under the facility
- In order for house/flat/apartment to be eligible for particular Tier, all criteria under that Tier have 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 spouses can avail financing under the scheme.
Links for Housing scheme status
To find out about the Approved and Unapproved Housing Societies/Schemes/Projects, please visit the following links:
- NAPHDA: www.naphda.gov.pk (EODB >Provincial Central Data Bank of All Approved/Unapproved Housing Societies/Schemes/Projects.
- Punjab: https://fc.punjab.gov.pk/HousingSocieties
- KPK: https://datastudio.google.com/reporting/da8d5c3c-aff0-4e78-804b-98c9d5560d75/page/bf73B?s=r26KfU7mfSM
For immediate and further information regarding Mera Pakistan Mera Ghar (Government Markup Subsidy Scheme for Housing Finance – G-MSS) you can call on 033-77-786-786; the Joint Call Centre number is open 24 hours to answer loan/financing queries about Mera Pakistan Mera Ghar (G-MSS).
- Simplified Application Forms