In Pakistan, becoming a homeowner is a dream for many. However, the country’s soaring real estate market has made it impossible for many to achieve this dream, especially for the lower- and middle-income classes.
If the current trends continue, these groups would be excluded entirely from the market.
To tackle this issue, the government of Pakistan launched a home financing initiative known as the Home Building Finance Company (HBFC), with the sole purpose of providing easy-installment home loans. The company continues to help those wanting to become homeowners through its financial assistance programs.
For those that want to know more about how to avail of these loans, Graana.com features everything you need to know about HBFC home loans in Pakistan.
Established in 1952, House Building Finance Company (HBFC) is the country’s only real estate financing institution. With regional offices and area branches spread all over Pakistan, the institution aims at providing financial assistance to every Pakistani struggling with housing needs.
Over the years, the company has launched several programs to provide affordable housing to the lower- and middle-income classes. Programs such as ‘Ghar Pakistan’ and ‘Ghar Aasan Flexi’ allowed millions of Pakistanis to become homeowners with minimal debt.
Currently, the company’s objective is to reduce the demand and supply gap of residential units in the country, allowing the majority of the masses to own a home.
Despite majorly targeting the middle- and lower-income groups in the country, HBFC home loans are also available for almost all individuals that need some sort of financial assistance in closing the deal. Currently, the company offers three types of loans to its clientele.
These loans have extended to livestock owners, farm owners, and non-resident Pakistanis. These flexible payment solutions aim to assist anyone in Pakistan that requires finances for their housing needs.
Since the program’s primary objective is to facilitate lower and middle-income groups, a strict eligibility criterion has been set. To be eligible for the ‘Ghar Pakistan Scheme’, your monthly income should be below 100,000 PKR, while the ‘Ghar Pakistan Scheme Plus’ requires a monthly income below 175,000 PKR.
Affluent individuals can also apply for a home loan through the ‘Ghar Sahulat Scheme’. However, these loans offer higher interest rates since the target audience of these loans are the lower-income groups.
Moreover, those applying for the HBFC home loans must be salaried individuals, self-employed business owners, and self-employed professionals. For verification purposes, HBFC requires a one-year bank statement, monthly utility bills, and a salary slip.
If you are unfamiliar with the application process for an HBFC home loan, simply follow the instructions below.
Pakistan’s real estate market is set to exclude middle- and lower-income groups, making it impossible for them to become homeowners. HBFC home loans aim to combat this exponential increase in prices by providing low-interest home loans with easy instalments. For more information like guide to meezan home loan, visit Graana.com, Pakistan’s first online real estate market.
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