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Home finance is just like a dream come true in Pakistan.

Those days are long gone when you had to wait for years to build your dream home with your life savings. Since the government of Imran Khan came into power, their constant support for the housing sector has provided a boost, by and large, to the construction industry.

Subsidized Housing Finance in Pakistan


Since 1952, House Building Finance Company Limited was the only leading company to provide home loans in Pakistan.

However, the government of Pakistan initiated a plan to build five million homes in Pakistan. In the same spirit, Pakistan Security and Exchange Commission granted licenses to three companies for the issuance of home finance in 2021.

These three companies are Pakistan Housing Finance Company Limited, Trellis Housing Finance Company Limited, and Asaan Ghar Finance Limited to provide low-markup housing finance to salaried people in Pakistan.


Financing your own home, however, was never easy as it is now in the presence of ample favorable mortgage rates with lower interest rates and longer debt maturity. In this regard, to provide low-cost housing schemes to the low-income and middle-class groups, Naya Pakistan Housing & Development Authority was established to assist the housing funding and construction industry in building five million houses in Pakistan.

Housing Finance by Commercial Banks


Therefore, if we talk about financing a home in the real estate sector, the State Bank of Pakistan plays a central role in this regard.

All the commercial banks are bound to disburse five per cent of their total mortgages and debts to the people for financing their homes. In case of any noncompliance by the banks, they’re liable to the penalty by the SBP. Despite these strict measures, only a few banks are thriving in meeting the criteria so far.


Well, if you want to build a home, the following banks, where you have a financial account, provide home financing at an affordable cost and convenient instalments.

  • Meezan Easy Home (Meezan Bank)
  • HBL Islamic Home Finance (HBL)
  • MCB Home Loans (MCB)
  • Fysal Home Finance (Fysal Bank)
  • Mera Pakistan Mera Ghar (Bank Al-Habib Limited)
  • Mera Pakistan Mera Ghar, Low-cost Housing Finance (Bank of Punjab)
  • Allied Home Finance, Ghar Wo Jo Apna Ho (Allied Bank)
  • Roshan Apna Ghar (Standard Chartered Bank)
  • Dubai Islamic Home Finance (Dubai Islamic Bank)
  • JS GharApna Home Loans (JS BANK)
  • Mera Pakistan, Mera Ghar Scheme (Askari Bank)
  • Al-Bait Home Finance (Al Baraka Bank)
  • Home Loan Facility (UBL)
  • Samba Home Loan (Samba Bank)
  • Mera Pakistan Mera Ghar (soneri Bank)
  • Alfalah Ghar Asaan (Bank Alfalah)
  • Home Finance (summit Bank)
  • Muskun Home Finincing (Bank Islami)
  • NBP Saibaan (National Bank of Pakistan)
  • Khushhali Apna Makaan (Khushali Microfainance Bank Limited
  • Mera Pakistan-Mera Ghar (Habib Metro Bank)

Eligibility Criteria

Although there’re variations from one bank to another regarding age limitation and the minimum amount of income required for the eligibility, you can visit any bank like HBL home loan, Meezan bank home loan or Standard Chartered home loan, to match the eligibility criteria to your requirements before you go for a house-building loan.

So, this is how you can get home finance in Pakistan as outlined by the State Bank of Pakistan.

  • A Pakistani National
  • First-time homeowner
  • Will be considered for a loan once

How much home loan will be offered?

Most importantly, the housing loan size has been associated with the house’s size, whereby the loan term’s interest rate is set accordingly. The loans, however, have been divided into the following tiers.

Tiers Size of house/apartment Price of Housing Unit Loan Size Customer Pricing Bank Pricing
Tier 0 5 Marla/ 1250 Sq. yards No limit 2 million 5% for the first five years and 7% for the next KIBOR + 700BPS
Tier 1 5 Marla/ 850 Sq. yards 3.5 million 2.7 million 3% for the first five years and 5% for the next KIBOR + 250BPS
Tier 2 5 Marla/1250 sq. yards No limit 6 million 5% for the first five years and 7% for the next KIBOR + 400BPS
Tier 3 10 Marla No limit 10 million 7% for the first five years and 9% for the next KIBOR + 400BPS


Moreover, the minimum loan tenor is five years, and the maximum is 12 years. However, the customer can choose the loan tenor as it may seem convenient to them. Check how to get property insurance in Pakistan.

How can you apply?

If you want to apply for a subsidy on the housing project. You’ve to download the application form from the bank. You will be required to provide the following documents along with your application:

  • A valid CNIC
  • Three passport size photographs
  • A proof of your business of three years
  • Evidence of two years for the salaried people/ Salary slip for the last three months
  • Bank statement for the previous 12 months

After verifying all your documents and the eligibility for the housing finance scheme, you’ve to visit the bank for a final procedure. The state bank has ensured that the whole scheme is shariah-compliant and interest-free.

For more information, you can check Meezan bank loans how it works. Check also the difference between registration and property transfer in Pakistan.

So, you know all the requirements for building your dream home in Pakistan. If you’ve any queries, you can contact our team or leave a comment to let us know.