House-Loan-In-Pakistan

Which Bank Is Best For House Loan In Pakistan (Get 5-50 Lakh Home Loan) [Sharia Compliant]

Meezan Easy House Loan In Pakistan, where your dream of owning a home becomes a reality through Shariah-compliant solutions tailored to your needs.

At Meezan Bank, with our Diminishing Musharakah structure, we ensure transparency and fairness in every transaction, fostering joint ownership between the bank and the customer.

Our diverse range of financing products, including Easy Buyer, Easy Builder, Easy Renovate, Easy Replace, and Easy Enhancement, caters to various housing needs, whether you’re purchasing, constructing, renovating, or enhancing your property.

Furthermore, our flexible payment plans, such as the UMI and Step-up models, offer convenience and affordability throughout the financing journey.

Experience seamless application procedures and transparent processing charges as we guide you toward homeownership with integrity and trust.

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Which Bank Is Best For House Loan In Pakistan (Get 5-50 Lakh Home Loan) [Sharia Compliant]

House-Loan-In-Pakistan
House-Loan-In-Pakistan

Table of Contents

Easy Home Financing with Meezan Bank

Meezan Easy Home Financing offers an interest (Riba) free solution for home financing needs. The financing operates on the principle of Diminishing Musharakah, where the customer and Meezan Bank engage in joint ownership of the property.

Unlike conventional loans, Easy Home is based on co-ownership rather than a loan agreement, ensuring Shariah compliance. Meezan Bank shares the cost of the property, establishing joint ownership, and gradually transferring ownership to the customer.

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Key Features of Meezan Easy Home Financing

  • Highest Financing Amounts: Meezan Bank offers some of the highest financing amounts in the market, ensuring customers can secure the funding they need for their dream home.
  • Maximum Finance against Property Value: Customers can finance a significant portion of the property value, making it easier to purchase their desired home.
  • Flexibility to Make Partial Pre-payments: The financing solution provides the flexibility for customers to make partial pre-payments, helping them reduce their outstanding balance and overall financing costs.
  • Shariah-Compliant Life Takaful Facility: Meezan Bank offers a Shariah-compliant life Takaful facility, providing customers with insurance coverage that aligns with Islamic principles.
  • Affordable Installments and Regularly Reducing Monthly Rental: The financing plan is structured to offer affordable monthly installments, with the rental portion reducing regularly as the customer’s equity in the property increases.

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Eligibility Criteria For House Loan In Pakistan

Eligibility-Criteria-For-House-Loan-In-Pakistan
Eligibility-Criteria-For-House-Loan-In-Pakistan

  • Citizenship: Pakistani nationals, both residents and non-residents, are eligible for the financing according to the bank’s policy.
  • Age Criteria: Applicant & co-applicant (with income clubbing) Minimum 25 years and maximum 65 years. Co-applicant (without income clubbing) Minimum 21 years and maximum 70 years. *For salaried individuals, the applicant’s age must not exceed 65 years or the retirement age. The normal retirement age is considered as 60 years if not specified otherwise.
  • Customer/Applicant: Primary (or Single) & Co-applicants allowed. Co-applicant must be an immediate family member*, including spouse, parents, adult children, brothers, and sisters only.
  • Income Criteria: Salaried & Self-Employed Professional (SEP) Minimum Gross Income of PKR 50,000** per month. 100% co-applicant’s income may be clubbed in the case of spouse only. Self-Employed / Business Person Minimum Gross Income of PKR 100,000 per month. *Self Employed Professional includes doctors, engineers, auditors & architects. **For contractual employees, a minimum of PKR 100,000 per month is required.
  • Employment Tenure: Permanent job with a minimum of 2 years continuous work history in the same industry/field. For contractual employment, a minimum of 2 years continuous work history in the same industry/field along with having a total experience of 4 years.
  • Self-Employed / Business Person: Minimum 3 years in the current business/industry.

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Meezan Easy Home Financing Products

  • Easy Buyer: Choose Easy Buyer for a ready-to-move-in home financing solution.
  • Easy Builder: For those looking to build their dream home, Easy Builder offers the ideal financing option.
  • Easy Renovate: Whether you want to enhance your home or simply repair it, Easy Renovate provides the necessary financing.
  • Easy Replace: Transfer your existing mortgage to Meezan Bank with Easy Replace.
  • Easy Enhancement: Enhance your existing facility with Easy Enhancement, tailored to meet your evolving needs.

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Payment Plans for Meezan Easy Home Financing

UMI Model:

Structured under the concept of Diminishing Musharakah. The bank and customer enter into a Musharakah Agreement and both parties provide investments for property purchase/construction/renovation.

Joint ownership is created in the property between Bank & customer. Bank’s share divided into units given to the customer on rent; the customer purchases the Bank’s share (units) over the transaction tenure.

Step-up Model:

Intended for customers seeking maximum financing with lower initial installments. Based on Shariah-compliant Diminishing Musharakah structure.

A monthly installment in initial years is lower, making it easily affordable. Shariah-compliant alternative for customers seeking maximum financing from the Bank.

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Profit Rate for Meezan Easy Home Financing

Meezan Bank’s profit margin is directly linked to market trends to offer competitive rates. Shariah allows the use of conventional market factors as benchmarks for profit rate determination.

  • Salaried Customers:
  • Variable Pricing Rate:
    • Fixed for 1st Year: K* + 3.00% p.a.
    • Annual Re-pricing: K** + 3.00% p.a. (Floor 8.00% p.a. and Cap 30% p.a.)
  • * For the first-year Fixed Rate, ‘K’ denotes KIBOR (Karachi Inter Bank Offer Rate) announced on the 1st working day of each calendar month.
  • ** Applicable KIBOR will be 12-month KIBOR announced on the first working day of the month of profit rate revision.

  • Businessmen Customers:
  • Variable Pricing Rate:
    • Fixed for 1st Year: K* + 4.00% p.a.
    • Annual Re-pricing: K** + 4.00% p.a. (Floor 8.00% p.a. and Cap 30% p.a.)
  • * For the first-year Fixed Rate, ‘K’ denotes KIBOR (Karachi Inter Bank Offer Rate) announced on the 1st working day of each calendar month.
  • ** Applicable KIBOR will be 12-month KIBOR announced on the first working day of the month of profit rate revision.

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Shariah Compliance of Meezan Easy Home Financing

  • Diminishing Musharakah Structure: Easy Home operates through the Diminishing Musharakah, complying with Shariah laws related to financing, ownership, and trade.
  • Joint Ownership and Transfer of Ownership: Joint ownership is created, and ownership is gradually transferred to the customer instead of just lending money, ensuring Shariah compliance.
  • Financing Terms:
  • Meezan Bank finances up to 65% and 75% of the property value for businessmen and salaried individuals, respectively.
  • Monthly Payment Structure: Customers agree to a monthly payment to the Bank, part of which is for using the house and part for purchasing the bank’s share in the house.
  • Ownership Transition: Upon completing the agreed-upon payment, the customer becomes the sole owner with a free and clear title to the property.
  • Profit as Payment for Use: The profit charged by the Bank is considered payment for using its share of the house during the contract’s life.

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Application Process for Meezan Easy Home Financing

Application-Process
Application-Process

  1. Submit a filled and signed application form to Meezan Bank along with the required cheque for Processing Fees & External Agency costs.
  2. Attach the required documents with your application.
  3. Meezan Bank will verify your residential/office addresses.
  4. For Salaried Self-Employed professionals/businessmen, Meezan Bank will conduct necessary credit assessments and associated due diligence based on provided information.
  5. Meezan Bank will obtain a legal opinion on the property documents provided by you.
  6. Meezan Bank’s appointed valuation agency will evaluate the property to determine its market value.
  7. After fulfilling all credit requirements, Meezan Bank will issue a conditional offer letter.
  8. Upon approval, open an account at Meezan Bank.
  9. After approval and account opening, sign the Islamic House Finance Agreement and other legal documents at Meezan Bank.
  10. A Meezan Bank officer and authorized lawyer will accompany you and the seller of the property to the appropriate bank or registrar’s office for property transfer.

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Processing Charges for Meezan Easy Home Financing

  • Type of Charges:
    • Salaried: PKR 8,000
    • Businessmen: PKR 8,000
  • FED on Processing Charges @ 16%:
    • Salaried: PKR 1,280
    • Businessmen: PKR 1,280
  • Legal Report Charges: Charged at actual cost.
  • Property Valuation Charges: Charged at actual cost.
  • Income Estimation Charges: Not applicable for salaried individuals; charged at actual cost for businessmen.

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Contact Details of Meezan Bank

  • Website: https://www.meezanbank.com/
  • Email: info@meezanbank.com
  • Phone: +92 (21) 38103500 & +92 (21) 37133500
  • Address: Meezan Bank Limited, Meezan House, C-25 Estate Avenue, SITE, Karachi.

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FAQs | House Loan In Pakistan

What is the basis for Meezan Easy Home Financing’s profit rate?

The profit rate is based on market trends and is directly correlated to ensure competitiveness. Shariah allows the use of conventional market factors as benchmarks for determining the profit rate.

How does Meezan Easy Home Financing ensure Shariah compliance?

It operates through the Diminishing Musharakah structure, which involves joint ownership between the bank and the customer. The transaction is not based on lending and borrowing but on joint ownership in the property.

What are the eligibility criteria for Meezan Easy Home Financing?

Pakistani nationals (residents or non-residents) are eligible, with varying age requirements depending on the applicant type (salaried, self-employed professional, or businessman).

What are the different financing products offered by Meezan Bank for home financing?

Meezan Easy Home offers several products, including Easy Buyer (for ready-to-move-in homes), Easy Builder (for home construction), Easy Renovate (for home improvement), Easy Replace (for transferring existing mortgages), and Easy Enhancement (for enhancing existing facilities).

What are the payment plans available for Meezan Easy Home Financing?

Meezan Bank offers the UMI (Uniform Monthly Instalment) and Step-up Payment plans, both based on the Shariah-compliant structure of Diminishing Musharakah.

What is the application procedure for Meezan Easy Home Financing?

The application process involves submitting a filled and signed application form, along with the required documents and processing fee. The bank then conducts necessary verifications and assessments before issuing a conditional offer letter.

What are the processing charges for Meezan Easy Home Financing?

The processing charges are PKR 8,000 for both salaried individuals and businessmen, with an additional Federal Excise Duty (FED) of 16%.

How can I contact Meezan Bank for more information about Easy Home Financing?

Website: https://www.meezanbank.com/
Email: info@meezanbank.com
Phone: +92 (21) 38103500 & +92 (21) 37133500
Address: Meezan Bank Limited, Meezan House, C-25 Estate Avenue, SITE, Karachi.

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