I have been looking at the home loan offers under prime minister imran khans home loan scheme by different banks. I have so far checked the details of the loan and requirements for the home loans offered by 4 banks faysal bank, bank alfalah, meezan bank and hbl.
Generally, for what i could see there isn't much of a difference between what is offered by any of the banks, except in their requirements.
For example, i noticed that the income requirements for meezan bank is relatively lower than what is offered by habib bank or bank alfalah. Similarly their requirements for business or employment is also easier.
Things weren't exactly in the case of all the banks so i wasn't sure how any of these banks will deal with it. It is possible after the 10-year fixed period they may have different rates of mark-up. If anyone can find out, could you tell me?
Has anyone else checked and compared others or these banks? Which, do you think offers the slightly better options?
You are right brother, 5% markup for 5-marla house construction is pretty standard and 7% for 10-marla. However, some banks have income and nationality restrictions.
Like I prefer standard chartered and they are only issuing loans to only Pakistani nationals and have no income restriction that I can find. They are issuing loans only to first time home owners though and they will issue the loan to an individual only once.
When the government first announced this initiative, I was personally interested in getting a loan to construct a house, but the fine print details are making me nervous. Can anyone here tell me an estimate on monthly instalment for 5-year loan plan? The loans have 5, 10 and 20-year tenure, but I think the monthly instalment would be too dear for low-income groups. Sometimes I wonder what kinds of income Imran Khan had in mind when he announced 'low cost' housing units?
The regulations have been issued by state bank and banks can only specify the income criterias or equity ratios requirements. They cannot change rate at which lending would be made. However, the insurance portion of home is in their hands and you can look at it to see which bank will charge you most.
I have been doing some research and meeting with various bank managers so my source is what the bank managers are saying.
But to me the biggest issue is of the total principal. I cannot foresee a good place where I can get a 5 Marla house ready in 60 million. If you guys have any suggestions, I would be very grateful.
Any help?
- Another problem that I foresee and have faced, there is a lack of coordination between TMA, LDA, and banks. Banks are asking to purchase these housing units only within LDA approved areas and you know the prices of land in LDA approved areas are higher than others.
LDA should public all relevant areas which we can mortgage through banks. LDA website is not updated and TMA approved areas are also missing on their website.
- All commercial banks should allow consumers to avail of purchase of plot + construction thereon option, that is the only way we can build a normal house within SBP offered budget in Lahore.
- SBP should increase the financing limit by 1.0 million in capital cities where prices are higher than the rest of the cities and areas.