Pakistan First Time Home Loan Scheme
Pakistan Launches Subsidized Housing Loans for First-Time Buyers
ISLAMABAD – The government has unveiled a new initiative aimed at helping first-time homebuyers secure affordable housing loans. Under the program, eligible individuals can apply for loans ranging from Rs 2 million to Rs 3.5 million.
The State Bank of Pakistan has set the loan tenure at up to 20 years, with an interest rate subsidy available for the first 10 years. The scheme covers all conventional and Islamic banks, microfinance institutions, and the House Building Finance Corporation (HBFC).
Loans will be priced at KIBOR plus 3%, with subsidized rates offering borrowers a 5% interest rate for loans up to Rs 2 million, and an 8% rate for loans up to Rs 3.5 million. The scheme also waives all loan processing fees, making it more accessible for first-time homeowners.
Earlier in July, the Economic Coordination Committee (ECC) of the Cabinet approved a mark-up subsidy scheme to support 50,000 housing units, with a total budget of Rs 72 billion for the current fiscal year.
The initiative is specifically designed for individuals who do not own any property. Eligible applicants with valid CNICs can benefit from long-term housing finance at subsidized rates. After the first 10 years, loans will revert to prevailing market interest rates.
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