Pakistan home loans are set to become quicker and more accessible after the State Bank of Pakistan introduced new rules for banks. The move aims to reduce delays and help more citizens secure financing for homes under the government-backed housing scheme.
According to the latest directive, banks and the House Building Finance Company Limited must complete loan approval decisions within 15 working days. This timeline starts once a complete application is submitted, addressing long-standing complaints about slow processing.
The central bank has also relaxed property valuation requirements. For properties worth up to Rs. 5 million, banks can now rely on their internal assessments. This change is expected to cut costs and save time for applicants. However, for higher-value properties, at least one valuation from an appraiser approved by the Pakistan Banks’ Association will still be required.
The updated framework also revises eligibility criteria. Borrowers must ensure that their total monthly repayments, including all loans, do not exceed 65% of their net disposable income. This condition aims to reduce default risks while keeping loans within affordable limits.
The housing finance initiative has also been rebranded as the “Wazir-e-Azam Apna Ghar Program – Ghar Ho Tu Apna.” Under this scheme, eligible applicants can obtain financing of up to Rs. 10 million. The loans are offered at a subsidized flat rate of 5%, making them more affordable for middle-income households.
Officials believe these changes will improve access to Pakistan home loans and boost the construction sector. Faster approvals can help both buyers and builders move projects forward without long financial delays.
For many Pakistanis, owning a home has remained a challenge due to complex procedures and slow banking processes. The new rules signal an effort to simplify access and encourage home ownership across the country.
