Karachi: Prime Minister Shehbaz Sharif is set to launch a new housing finance initiative under the ‘Apna Ghar Program’, aimed at expanding access to home ownership through subsidised loans and simplified procedures.
According to official details, the scheme will offer housing loans of up to PKR 10 million with a repayment tenure of up to 20 years. Applicants will be able to choose from multiple financing tiers, including PKR 2.5 million, PKR 5 million, PKR 7.5 million, and PKR 10 million.
The markup rate has been fixed at 5% for the first 10 years, after which standard market rates will apply for the remaining period. Estimated monthly instalments are structured at around PKR 16,499 for a PKR 2.5 million loan, PKR 32,997 for PKR 5 million, PKR 49,497 for PKR 7.5 million, and PKR 65,996 for PKR 10 million.
Eligibility will be limited to individuals holding a valid national identity card with no prior loan history. The financing can be used either to purchase a 10-marla plot or to construct a house. Under the scheme, the government will finance up to 90% of the total cost, while applicants will be required to contribute the remaining 10%.
Loans will be accessible through Islamic and conventional banks, microfinance institutions, and the House Building Finance Company Limited. Officials said no upfront fees will be charged prior to loan disbursement.
Oversight of the programme will be carried out by the State Bank of Pakistan and the Pakistan Housing Authority Foundation, while applications will be submitted online, with approvals expected within about one month.
In parallel, the State Bank of Pakistan has introduced a set of facilitative measures to streamline the housing finance process and reduce delays. Under the revised framework, banks and the House Building Finance Company Limited have been directed to complete credit approvals within a maximum of 15 working days from the receipt of complete applications.
The central bank has also capped the debt burden ratio at 65% to ensure responsible lending while allowing flexibility for borrowers. This means total monthly repayment obligations, including housing finance and other consumer loans, must not exceed 65% of a borrower’s net disposable income.
Additionally, property valuation procedures have been simplified. Banks and HBFCL will now be allowed to conduct in-house valuations for properties valued up to PKR 5 million, while higher-value properties will require assessment by an approved external valuator to ensure transparency.
Certain prudential regulations have also been relaxed to facilitate smoother implementation, as authorities look to accelerate housing finance uptake and support broader home ownership goals across the country.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
