Home loans in Pakistan: All you need to know

It has become increasingly difficult for lower-class and middle-class families to purchase a home of their own due to rising inflation and low income levels. The only choices left to people are to either obtain a home loan or live in a rented property. Even though the majority of people choose the former option, the latter is still a desired one.

The practice of getting house loans has been more popular recently primarily because of the policies implemented by the current administration to make it easier for Pakistanis to become homeowners. Under the Naya Pakistan Housing Scheme, the government of Pakistan has initiated an ambitious drive to construct 5 million affordable homes. 

In response, banks across have been given incentives to facilitate the easy acquisition of home loans by regular individuals. In this article, we will discuss the different home loans in Pakistan.

Home Loans in Pakistan

According to the most recent research conducted by Pakistan Housing Finance (PHF), families from the lower middle class are the main drivers of the country’s robust demand for home loans in practically every metropolis. The study, which examined 26 Pakistani cities, including all of the province capitals, discovered that lending institutions might be able to add 500,000 new home loan clients if they had the proper framework, user-friendly products, easy funding, and lenient terms.

Where in Pakistan Can I Get a House Loan?

Owing to the government’s ongoing initiatives to promote homeownership, numerous banks have started providing various house loan options. As the interest rates are essentially constant, although each bank has slightly different requirements, standards, and payback procedures. We’ve identified some of the most well-known institutions that provide house loans in this blog.

JS Bank

JS GharApna Home Finance makes owning your dream home a reality with our leading home loan solutions in Pakistan. They offer competitive interest rates and flexible repayment options tailored to fit your budget, ensuring a financing plan that suits both your financial and personal circumstances. 

Their experienced team is dedicated to guiding you through every step of the process, from initial consultation to finalizing your loan, providing expert advice and transparent terms with no hidden costs. Choose JS GharApna for a smooth, straightforward, and stress-free path to homeownership. 

Bank Al-Habib

With 950+ branches, Bank Al-Habib is the sixth-biggest bank in Pakistan. Under the national government’s subsidized home financing program, “Mera Pakistan Mera Ghar,” Bank Al-Habib provides home loans with the backing of the Pakistani government and the State Bank of Pakistan. 

Habib Bank Limited (HBL)

HBL is the biggest bank in Pakistan and the nation’s first commercial bank, having been established in 1940. HBL now operates in 14 countries with 1650+ branches and 2100+ ATMs exclusively in Pakistan. It provides a range of home loan products, including as personal loans, Roshan Apna Ghar (for Pakistanis living abroad), and a house financing model that is subsidized under the government’s Mera Pakistan Mera Ghar program. The loans are available for both the purchase of an already-built home and for new construction.

Meezan Bank

Since it opened for business in 2002, Meezan Bank has grown to include more than 850 branches across Pakistan. Meezan home loans for Pakistanis living abroad are a special kind of financing that let those who live outside of Pakistan obtain funding for building or buying a house in Pakistan. In addition, it provides home finance through government incentive programs.

How to Apply for a Home Loan

Once you make the decision to apply for a bank loan in Pakistan for the purpose of building, buying, or renovating a property, it’s critical to comprehend the funding’s eligibility standards, conditions, and repayment schedule. 

You can only apply for a home loan through Pakistan’s banking system if you are employed or manage a business. Because they must verify that the consumer has the financial capacity to repay the loan, banks have put this criterion in place to guarantee a minimum bad debt ratio.