Albeit, banking sector being quite dynamic in Pakistan, and consumers making extensive use of different types of loans for various purposes, making use of mortgages or home financing services is still not as prevalent as other types of finances. People in Pakistan spend their lives in saving the money, in order to be able to buy their own house. Still, very few can manage to actually live this dream. In such state of affairs, mortgage can be a very handy option. It may not work out perfectly for all and sundry, but it is worth taking into consideration for people with good monthly income, especially those who are living in rented houses.
There are a number of banks providing different home finance products for their customers and you can avail any of them when buying or constructing your home. Some of these banks are mentioned below.
United Bank Limited (UBL) – UBL Address
UBL provides financing for both buying and constructing purposes, under the name “UBL Address”. These loans are made available with two types of interest rates (known as floating and adjustable). To be eligible, you need to be a resident of Pakistan and earning a minimum monthly income of 15000. Note that a family can qualify for this loan even if the total income of both spouses tote up to 15000. One can get up to 500,000 and bigger loans by taking advantage of this service. Mark up rates lie between 11.99 percent and 16.5 percent of actual amount and these loans are granted for durations of 3 to 20 years.
Standard Chartered – Home Purchase & Home Credit Standard Chartered is a well known name in banking sector. In Pakistan, Standard Chartered Bank provides financing only for completed residential properties (do not cover commercial properties). Once you submit the application, they will verify to determine, if you meet their eligibility criteria, that goes like this … borrower monthly income should be at least 30,000 per month and he/she should be not less than 25 years of age. One can get as much as 30 million worth of financing from standard Chartered Home Purchase scheme. On the other hand, home Credit is intended for people who are going for maintenance or construction work.
Muslim Commercial Bank (MCB) – Pyara Ghar
MCB offers a range of financing options for different purposes including home purchase, renovation, construction or land purchase. Their home finance option is available in all major cities like Lahore, Karachi, Islamabad, Faisalabad and Rawalpindi. MCB provides up to 20 million loans for a period of 2 to 20 years; however you cannot obtain this loan for commercial properties.
These are not the only options, seeing that many other banks like Citibank, HSBC and NBP have their own programs as well. In case you are looking for home finance, you should stop at all of these banks in person and consult with the banker. After accumulating basic information you can compare between the options and choose the one that suits you best.