House Loan In Pakistan | Interest-free Home Loan In Pakistan

When it comes to getting a house loan in Pakistan, you have two options at your disposal: you can either go with private lenders or government entities.

The former offers house loan in Pakistan in exchange for high interest rates. At the same time, the latter makes its lending decisions based on several factors, one of which is the borrower’s credit score and repayment history.

If you decide to go with the latter option, however, there are some things you need to know and do before you can secure financing. Keep reading to learn how to get a house loan in Pakistan!

Top 10 Banks To Get A House Loan In Pakistan Online | Home Loan In Pakistan


Table of Contents

Here are the Top 10 Banks that give house loan in Pakistan:

  • NBP: NBP Mera Pakistan Mera Ghar
  • Bank Alfalah: Alfalah Ghar Asaan
  • HBL: HBL Islamic Home Finance
  • MCB: Mcb Home Loan
  • UBank: U Bank Home Loan
  • Mobilink Bank: Mobilink House Loan
  • Allied Bank: Allied Home Finance
  • Askari Bank: Mera Pakistan, Mera Ghar Scheme
  • Habib Metro Bank: Avail Home Finance Loan in Pakistan
  • Samba Bank: Samba Home Loan

NBP Mera Pakistan Mera Ghar


The National Bank of Pakistan (NBP) has introduced the “Mera Pakistan Mera Ghar” house loan in Pakistan. This program is for all citizens who have a CNIC, and it provides a special subsidized house loan facility. Each individual can benefit from this scheme only once.

The scheme offers various options, including purchasing a complete residential property (apartment/flat/house), buying a plot and constructing on it, or extending/expanding a self-owned residential property with a maximum limit of PKR 3.5 million.

The PKR 3.5 million represents the market value of a single housing unit or flat at the time of loan approval. The interest rates for the subsidized loan vary over the first 10 years.

In the initial 5 years, the interest rates are 3%, 5%, and 7% for different periods. For the next 5 years, the rates are 5%, 7%, and 9%. After completing 10 years, the regular housing finance rate of the bank would be applicable.

Alfalah Bank Ghar Asaan program


Bank Alfalah’s “Alfalah Ghar Asaan” program offers house loan in Pakistan to make home ownership easier. To apply, you must be a Pakistani citizen, regardless of your current residence. The financing tenure is flexible, ranging from a minimum of 3 years to a maximum of 25 years.

The bank considers up to 50% of the net disposable income for the debt burden. The pricing is based on markup charges, using a floating/variable rate option that changes every 12 months, determined by 1 year KIBOR + Bank margin.

The house loan in Pakistan scheme includes mandatory life and property insurances at combined rates up to 0.40% per annum, ensuring both your financing and your home are secure. The insurance payment for the first year is upfront, while subsequent portions are paid in installments.

HBL Mera Pakistan Mera Ghar


HBL Islamic Banking presents “Mera Pakistan, Mera Ghar,” a house loan in Pakistan housing scheme that follows Shariah-compliant guidelines using the Diminishing Musharakah mode of financing. This scheme offers a convenient and affordable way for you to achieve the house of your dreams. There are two options available:

  • Buy a Home: You can use this facility to purchase an already constructed property.
  • Buy and Build a Home: If you wish to buy a piece of land and build a house on it, you can avail of this facility. The maximum loan for financing ranges from PKR 3.5 Million to PKR 6.0 Million.

The financing tenor is up to 10 years, with the flexibility to extend it up to 20 years. This house loan in Pakistan housing scheme is designed to make homeownership accessible and suitable for your needs.

Step 1: Compare Home Loans

Lenders all over Pakistan offer house loan in Pakistan with different packages and interest rates. It is always better to compare all of your loan options, instead of going for just one option that you found online or through someone you know.

Comparing multiple house loan in Pakistan will give you an idea about how much you can borrow, which interest rate you qualify for, and what features your ideal loan should have.

This is also a good way to gauge how competitive different lending institutions are—if some lenders are giving out loans at lower rates than others.

It’s probably because they have an edge over other lenders who charge higher rates.

Step 2: What Factors Affect The Interest Rate

To keep things simple, let’s say you’re planning on paying 20% down. And let’s say you want to take out a loan for Rs 5 million (Rs 50 lakh). So how does that affect interest rates? It doesn’t.

It doesn’t matter what amount you plan on borrowing or whether you have a 20% or 25% down payment—the interest rate is based solely on your credit score.

This makes sense since banks are primarily concerned with their risk level and your credit score is one of their best indicators of that risk level.

Before we dive into what impacts your credit score, let’s take a step back and see how everything works together

Step 3: Choose The Best Home Loans

A variety of house loan in Pakistan are available. These loans also vary according to their interest rates, repayment schedule, and pre-payment penalties if any.

The market is flooded with personal, commercial, and investment house loan in Pakistan. The personal house loan in Pakistan offers low interest rates and flexible repayment schedules for borrowers with good credit scores.

However, these come with a pre-payment penalty, which means that if you choose to pay off your loan early, you have to pay some extra fees, which can easily be worth thousands of rupees.

If there is no pre-payment penalty then it’s even better because you have greater flexibility over when and how much you repay on your loan.

Step 4: Apply For A Loan Online Section

Thinking of getting your own home? If so, you’ll need to obtain financing. The first step is to apply for a house loan in Pakistan online.

To do so, take out your calculator and multiply your monthly income by twelve, then divide that number by four—that will be how much you can afford on an annual basis when it comes time to buy a house.

Next, multiply your annual budget by five—this will determine how much money you should have saved up already. Put all of that together with what’s remaining from Step 3 and add it up!

If there’s anything left over after that calculation is complete—put it towards interest payments as well!

Step 5: Fill Out Form Section

To get a house loan in Pakistan, you will need to fill out some paperwork. Before you start collecting documents and filling out applications, make sure you know which items are required.

If you want help with figuring out what your bank requires from you, talk with someone at your financial institution.

Your mortgage broker may also be able to help advise you on what documentation is needed. You can also use online resources.

Step 6: Approval Section

Applying for house loan in Pakistan is never easy. This can be especially true if you’re trying to get your hands on one with as many restrictions and conditions as traditional mortgage lenders.

However, getting approved for a house loan in Pakistan does not have to be difficult. If you take all of your loan applications seriously, it’s easier than you think to find an avenue that will satisfy all of your needs.

By following these steps, you should have no problem finding an option that works best for you and your circumstances.

Step 7: Sign Documents And Arrange Payments

There are several important documents you will need to sign and make payments for when buying property, such as an offer letter, transfer deed, and mortgage agreement.

Your lawyer will arrange these documents and inform you when it is time for you to sign them. One of your payments will be toward stamp duty on transferring ownership of the property into your name.

It is based on 4% of the property’s value or Rs1 million (whichever is higher). The other payment will be for registration fees, which are about Rs3,000 per lakh.

This may vary from state to state but generally speaking, will cost around 10%-15% of your loan amount.

Step 8 (Optional): Add/Transfer Ownership

Signing documents and arranging payments can be some of the most stressful parts of moving house.

Unfortunately, we’ve been in situations where we were asked to sign blank documents or where additional costs were suddenly added to our total costs at the last minute.

So you must know what you’re signing and how much you’ll need for your move. We recommend getting an idea of these costs before jumping into anything:

Think about everything that will be involved, including legal fees, insurance (if necessary), movers, and storage space.

If there are any extra fees they should be added to your final quote (and check whether they’re tax-deductible).

Be careful when agreeing on extra costs – once you’ve agreed on something there’s no going back!

House Loan In Pakistan FAQs

Who can apply for the Mera Pakistan Mera Ghar Loan Scheme?

All Pakistani Nationals have CNIC and are Pakistani residents, at the age of 18.

Which Pakistani bank gives home loans easily?

Meezan Bank of Pakistan gives home loans easily among all the banks in Pakistan.

Interest-free loan in Pakistan?

Pakistan Poverty Alleviation Fund (PPAF) is a government institution that gives interest-free loans to all Pakistani nationals.

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