Mortgage Rates in Pakistan

Owning a house might seem like a far-fetched idea in this economy, but thankfully, the notion is still possible through mortgage payments.

Mortgage can help you own a roof over your head, and with property prices on the rise, it might be a worthy investment for the future. Several banks have started giving out home loans, and in this article, we’ll be listing some of the best options available for you on the market.

If you want to buy a house in DHA Islamabad, you can check Graana’s listings by clicking on the link.

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What Is a Mortgage?

It is a simple financial transaction between a lender and a borrower where, if you want to finance something like constructing a home or renovating an existing one, the borrower holds something of financial value, usually the land as security, to ensure recovery in case of failure of payment.

Banks Offering Mortgage Services in Pakistan

There are a number of banks that are offering mortgage and debt financing in Pakistan and some of them are listed below. However, it’s best to do thorough research and read the fine print carefully before locking into a contract with any bank.

United Bank Limited
Standard Chartered Bank
Askari Bank
Khushali Microfinance Bank
Habib Bank Limited

United Bank Limited

United Bank Limited or UBL offers a wide variety of services from the renovation and buying to constructing your own house. They offer loans with a duration between 5 to 25 years with generous loan amounts. For exact details, visit their website for more information.

Requirements

Facility Application Form.
CNIC copy of the applicant / co-applicant.
Proof of income documents.
Copies of property documents/details of the property.
Undertaking and Mandatory document form.

Standard Chartered Bank

Standard Chartered is a renowned name in the financial sector, and in this category, it is no exception as it offers a number of services and flexible financing options. They offer zero processing fees, along with the possibility of buying loans from other banks with repayment periods of up to 30 years.

Requirements

Nationality: Pakistani & Non-Resident Pakistanis residing in Singapore, Malaysia, Dubai, Bahrain
Cities: Karachi, Lahore, Islamabad/Rawalpindi
Age: 25 Years to 60 Years (Salaried) & 65 Years (Self-Employed)
Income: PKR 50,000 (Salaried), PKR 75,000 (Self Employed)
Documents Required
Copy of Valid CNIC
Salary Slip/ Bank Statement
Employment Letter

Askari Bank

A household name in the financial space, Askari Banks has been selling financial services ever since Pakistan’s inception. They offer multiple services in terms of mortgages. The bank offers loan amounts starting from Rs. 500,000 to Rs20 million, payable in 3 to 25 years.

Requirements

The minimum salary requirement for Askari Bank is Rs. 50,000. The age limit is 22-60 years, and the documents needed for further processing include CNIC, salary slips, and a 12-month bank statement.

Khushali Microfinance Bank

Khushali bank has set a precedent in the market, allowing anyone to become a homeowner. They offer mortgages on smaller assets, allowing you to gain access to these resources with ease. Khushhali Bank is providing home loans up to Rs.10,00, 000. It offers a tenure period between 6 months to 10 years.

Requirements

Age: 25 -60 years (65 years for pensioners)
The annual income of the applicant should be equal to or less than PKR 600,000 per year
Residing in the house/ ownership of the house (if the property has been given on rent) for at least 1 year
Salaried individuals must be working with the current employer for at least 2 years
2 years of business experience
NADRA CNIC/ SNIC holder

Habib Bank Limited

Among one of the oldest banks in service, Habib Bank Limited offers a multitude of services in terms of home financing. The bank also offers a Shariah-compliant home financing option that allows you to buy the home of your dreams in compliance with Islamic practices. Moreover, HBL provides a payment tenure of 3 to 25 years with financing options of up to 70% of property value.

Requirements

Salaried Individuals

The applicant must be a Pakistani citizen.
Applicant must be 25 years or more at the time of financing application and 60 years or less/ retirement age – whichever is lower at the time of financing maturity.
Monthly income must be from PKR 50,000/ or above.

Self Employed Individuals

The applicant must be a Pakistani citizen
The applicant is to be 30 years or more at the time of application and 65 years at maturity of financing.
Monthly income must be from PKR 100,000/ or above.

Documents Required

Salaried Individuals

Copy of valid CNIC/NICOP/SNIC
Two recent passport-size photographs
Original salary certificate stating the date of joining and the cadre of employment.
Latest three original/attested salary slips
Twelve months’ bank account statement where salary is credited.
Proof of five years’ occupation (business or profession)

Self Employed Individuals

Copy of valid CNIC/NICOP/SNIC
Two recent passport-size photographs
Proof of five years’ occupation (business or profession)
Bank certificate stating Title/ CNIC#/ Account#/ A/c Opening Date/ Business Entity/ Authorized Signatory Name
Bank statement for the last 12 months

These are some of the options available but make sure to read the fine print and ask questions to thoroughly know what you’re getting into.