In compliance of SBP Circular IH&SMEFD Circular no. 5 of 2019 (as amended from time to time), low cost housing finance facility under refinance scheme is being offered to the following individuals only:
- Children of martyrs (Shaheed) of law & enforcement agencies and armed forces and civilians martyred in terrorist attack
- Special persons holding CNIC with disability logo / Symbol.
- Transgender and
- Persons who desire to construct (including plot purchase) housing units in areas severely affected by terrorism like Mohmand, Bajaur, Orakzai, Kurram, Khyber, North Waziristan and South Waziristan districts of Khyber Pakhtunkhwa.
- Minimum: 0.5 Million
- Maximum: 2.7 Million
Purpose of Financing
- Purchase of plot and construction of house thereon
- Construction of a new housing unit
Tenure of Financing
Up to 12 ½ years including 06 months’ grace period or advised by SBP from time to time.
- First time home owner
- Must not have availed housing finance previously
- Maximum value of the housing unit up to Rs. 3 million
- The financing for plot to be purchased for constructing house shall be allowed upto Rs.1.0 million only
- Minimum net monthly income (verifiable): Rs.30,000/-
Q: What options does Allied Home Finance offer
Allied Bank is offering wide range of products including:
- House/Apartment Purchase
- Buy Land & Construct House
- House Construction (Land already owned)
- Home Renovation
- Loan Transfer Facility
Q: Can I mortgage my property and obtain financing for any other purpose?
No, the finance amount shall be used only for afore-mentioned purposes.
Q: In which cities can I apply for Allied Home Finance facility?
Currently you can avail Allied Home Finance facility for residential properties located in Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Gujranwala, Sialkot, Hyderabad and Multan.
Q: Does Bank finance in all locations of the above-mentioned cities or Bank is maintaining a negative list of locations?
Bank is not maintaining any negative list though Bank will prefer to finance on properties where it can secure its interest.
Q: Is Allied Home Finance facility available for overseas non-resident Pakistanis?
Overseas non-resident Pakistanis can apply under Allied Roshan Apna Ghar.
Q: What is the age criterion to apply for Allied Home Finance Facility?
Minimum age is 25 Years and maximum age is 57 Years; further, in case of salaried individual, applicant should not be more than 60 years old at the time of maturity of facility, whereas in case of self-employed individual, it should not be more than 65 years old at the time of maturity of facility.
Q: From where can I check for the list of properties acceptable for ABL for Financing?
Bank is not maintaining any positive or negative locations list. You just have to choose a residential property in the approved cities and get back to us to apply for financing. The bank will seek legal opinion from the bank’s legal counsel on property title documents. Further, the bank will seek an internal review to make sure the property you have selected is marketable with free access. After due diligence you will be informed, if the property is acceptable to the bank. In case, the identified property is not acceptable, you will be advised about other secured property options. Further, the bank is not bound by any commitment that you may have made with the seller.
Q: Do I need to get any verification on the Property Title Document prior to buying?
Yes, for your piece of mind and to check the authenticity of the property title documents, the bank seeks Clear Legal Opinion from Bank’s solicitor for all pre and post disbursement legal requisites.
Q: How the price of property will be determined?
The price of requested property will be determined by evaluation conducted by an Evaluation firm on ABL’s approved panel.
Q: Who is eligible for Allied Home Finance facility?
Individual meeting minimum eligibility criteria stated above is eligible to apply for Allied Home Finance facility.
Q: What is the minimum and maximum amount of financing under Allied Home Finance facility?
For purchase and construction of housing unit, financing from Rs.1.5 Million upto Rs. 75 Million can be availed and for home renovation from Rs.0.5 Million upto Rs.15 Million can be availed.
Q: For what term ABL is offering the Home Loan Facility?
ABL is offering housing finance facility minimum for 3 years and maximum for 25 years. However, for Home Renovation, maximum tenure of financing is 10 years.
Q: Does Allied Home Finance allow Co-Borrower under its eligibility criteria?
Yes, you can apply with a co-borrower who can be spouse, parent or son.
Q: How much down payment/equity shall be required?
You would need to contribute with 25% equity for purchase or construction of housing unit, 30% in case of buying land and constructing house thereon and 70% for home renovation. In case of home renovation, the value of land and existing structure will be counted to meet equity requirement.
Q: Is there a specific period in which I have to complete the construction?
Yes, for all purposes, the construction is to be completed within 12 months from the date of first disbursement.
Q: What Markup is being offered under Allied Home Finance?
Allied Home Finance is being offered at a variable (floating) mark-up rate of 1 Year KIBOR + maximum upto 4% bank’s spread per annum.
Q: Will the given mark-up rate remain the same throughout the term of the facility?
No, annual repricing will be done on each loan anniversary in line with revised 1 Year KIBOR, however, the bank’s spread will remain the same throughout the term of financing.
Q: Can I take finance for commercial property?
No, Allied Home Finance facility is only for residential properties.
Q: What will be total cost of application Processing?
It will be as per prevailing Schedule of charges (SOC).
Q: Do I have an option of early settlement of my Home Loan?
Yes, you can opt for early settlement however this would attract charges which will be in line with prevailing Schedule of Charges (SOC).
Q: Can I make partial loan payments?
After completion of two years, four (4) balloon payments are allowed during the tenure of the loan. Each balloon payment should be equivalent to EMI (equal monthly instalments) of at least 6 months. 2nd and subsequent balloon payments shall be allowed after 1-year gap. Revised repayment schedule would be issued accordingly after each balloon payment.
Q: What is the insurance arrangement?
Under Allied Home Finance facility, mandatory Life Insurance / Loan Protection Insurance shall be arranged by the Bank through its approved insurance companies covering total financing amount. However; if assurer charges premium over and above the agreed rate due to any abnormality observed in medical examination of the customer, customer shall bear the cost of additional premium over and above the premium agreed with Bank. Life Insurance / Loan Protection Insurance shall be arranged by the Bank on behalf of the customer. In addition, Property Insurance for total financing amount, will also be mandatory through approved insurers of the Bank, Property insurance shall be borne by the customer.
Q: Can I avail a loan transfer facility from ABL, for house loan obtained from any other Bank?
Yes, customers can apply for a Loan Transfer Facility after satisfactory repayments of minimum 18 months with existing Bank.
Q: What else do I need to pay other than ABL’s mark-up?
One-time Processing Fee will be charged. This fee shall be recoverable once your loan is sanctioned and you have signed and submitted all necessary documentation. Additionally; charges pertaining to duties & stamp charges, legal opinion on property, valuation, and insurance premium will be borne by you.
Q: How do I have to make the repayment?
Repayments shall be directly deducted from your account maintained at ABL; therefore, you would need to ensure that required funds are available in your account on due date.
Q: What if I don’t make my re-payments in accordance with the schedule?
If you don’t make repayment in accordance with the schedule the Bank has the right to recover late payment charges as per SOC.
Q: When and how can I get the “Statement of my Allied Home Finance loan” account?
Bank will issue bi-annual “Statement of Accounts” of your Allied Home Finance. The statement would include detail of principal and mark-up repayments, penalties (if any) charged during the year and outstanding balance.
Q: How can I apply and inquire about my application status?
You may apply for Allied Home Finance facility from any nearest ABL’s Branch or you may call on the helpline 111-225-225 for any assistance.
Following are the links of KP and Punjab for Provincial Central Data Bank of All Approved/Unapproved Housing Societies/Schemes/Projects. The links are also available on the website of NAPHDA www.naphda.gov.pk (EODB >Provincial Central Data Bank of All Approved/Unapproved Housing Societies/Schemes/Projects)