Buying a home is a dream for many Pakistanis 🇵🇰

However, the high cost of property makes financing a necessity 🏡💰

Luckily, banks & financial institutions offer home loans to help you buy, build, or renovate your home. 

But with so many banks offering different financing options—

How do you decide which one is best for you? 🤔

In this guide, you’ll learn about home loans available in Pakistan.

Types of Home Loans in Pakistan 

Home financing in Pakistan is divided into conventional and Islamic home financing, each with distinct features.

✅ Conventional Home Loans 

These work on an interest-based (Riba) model.

Banks charge fixed or variable interest rates linked to KIBOR (Karachi Interbank Offered Rate).

Customers repay both principal and interest over time.

✅ Islamic Home Financing

This follows Shariah-compliant models, such as Diminishing Musharakah, where the bank and customer co-own the property. 

The customer gradually buys out the bank’s share while paying rent on the remaining portion.

No interest (Riba) is involved, making it a preferred option for many borrowers.

Home Financing Options in Pakistan

Here are the most popular home financing options available in Pakistan:

Meezan Bank - Easy Home Islamic Financing 

Meezan Bank’s Easy Home is a 100% Shariah-compliant home financing solution. 

It follows the Diminishing Musharakah model, where you and the bank co-own the property.

Over time, you buy out the bank’s share while paying rent on their portion.

This financing works on a profit-sharing basis instead of interest. 

You can get up to PKR 100 million in financing, with a flexible repayment tenure of up to 25 years. 

Salaried individuals can get 75% financing, while self-employed applicants qualify for 65%. 

Meezan Bank ensures no hidden charges, and customers can make early payments to reduce their financial burden.

Moreover, it provides transparent and fair financing without uncertainty (Gharar). 

It follows a partnership model, eliminating compound interest (Riba). 

With flexible repayment options, customers can pay off their home financing at their own pace.

This makes Meezan Easy Home a trusted choice for Islamic home loans in Pakistan.

For more details and to apply, visit the Meezan Bank Easy Home page.

HBL Home Loan 

HBL Islamic Home Finance offers Shariah-compliant home financing under the Diminishing Musharakah model

It ensures an interest-free structure where you gradually buy out the bank’s share in the property.

Customers can avail financing, with limits ranging from PKR 2 million to PKR 50 million.

The repayment tenure ranges from 3 to 25 years, with equal monthly installments and reducing rentals.

HBL finances up to 70% of the property value and includes Property Takaful coverage.

Customers can partially settle or fully purchase the bank’s share before maturity, with a 5% price increase on early buyout units.

HBL Islamic Home Finance is available for existing and new customers, including Non-Resident Pakistanis (NRPs).

Salaried individuals must have a minimum monthly income of PKR 50,000 (existing customers) or PKR 100,000 (new customers)—

With at least five years of work history.

Self-employed applicants require PKR 100,000–150,000 monthly income and five years of business experience.

NRPs from GCC countries must earn PKR 400,000+, with five years of total employment and two years with their current employer.

The profit rate is linked to 1-Year KIBOR, with a PKR 10,000 processing fee.

Early settlements incur a 5% price increase on purchased units, while late payments require a PKR 2,500 charity contribution.

For more details and to apply, visit the HBL Islamic Home Finance page.

JS Bank Ghar Apna Scheme 

JS Bank’s Roshan Apna Ghar Scheme offers flexible home financing. 

It offers up to PKR 75 million in loans with repayment tenures of up to 25 years. 

Customers can transfer home loans from other banks through its Balance Transfer Facility.

This scheme includes three financing options: 

✅ Build Your Ghar (for construction)
✅ Buy Your Ghar (for property purchases)
✅ Renovate Your Ghar (for home improvements)

JS Bank offers up to 85% financing for non-resident Pakistanis (NRPs) & 80% for local applicants.

For more details and to apply, visit the JS Bank Roshan Apna Ghar page.

House Building Finance Company (HBFC) Solutions 

HBFC offers affordable home financing with government-backed loans for low and middle-income groups. 

Financing goes up to PKR 45 million, with tenures up to 25 years. 

It provides specialized schemes, based on income levels, such as:

✅ Ghar Pakistan Plus
✅ Ghar Sahulat Scheme
✅ Ghar Pakistan Scheme

HBFC’s graduated payment structure allows borrowers to start with lower installments, increasing payments as income grows. 

It also offers subsidized interest rates, making home loans more accessible than commercial banks.

For more details and to apply, visit the HBFC Home Loan page.

Allied Bank Home Finance 

Allied Bank offers up to PKR 75 million home financing for buying, constructing, or renovating a home. 

With a repayment tenure of up to 25 years, customers can choose conventional or Islamic financing based on their preference.

The bank also provides a low-cost housing scheme for applicants seeking affordable financing between PKR 5-27 lakh. 

Customers maintaining premium deposit accounts can avail of a 0.5% discount on interest rates.

For more details and to apply, visit the Allied Bank Home Finance page.

BankIslami MUSKUN Financing 

BankIslami’s MUSKUN Home Financing is a 100% Shariah-compliant solution. 

It’s based on Diminishing Musharakah and Ijarah principles. 

It offers financing up to PKR 150 million with a tenure of up to 25 years. 

Customers gradually buy out the bank’s share while paying rent on the remaining portion.

MUSKUN financing covers home purchase, construction, and renovation. 

It provides up to 85% financing for professionals and 80% for businesspersons. 

The bank also offers a construction monitoring system—

Ensuring disbursements are made in phases based on project milestones. 

Customers can prepay without penalties after the first year—

Making it a very flexible home financing option.

For more details and to apply, visit the BankIslami MUSKUN Home Finance page.

Faysal Islami Home Finance 

Faysal Bank’s Islamic home financing follows the Declining Balance Musharakah model—

Ensuring a Shariah-compliant alternative to conventional loans. 

It offers financing up to PKR 150 million with a tenure of up to 25 years. 

Customers gradually purchase the bank’s share in the property while paying rent on the remaining portion.

A unique feature of this financing is its prepayment flexibility—

There are no penalties for early payments after the first year. 

Faysal Bank also offers NRP-specific packages that allow Non-Resident Pakistanis (NRPs)—

To finance homes in Pakistan with dollar-denominated repayment options.

For more details and to apply, visit the Faysal Islami Home Finance page.

Pakistan Mortgage Refinance Company (PMRC)

Although PMRC is not a direct lender, it plays a crucial role in Pakistan’s housing finance sector by providing liquidity to banks. 

It refinances up to 80% of housing loan portfolios—

Allowing banks to offer longer tenure home loans (up to 25 years) at lower interest rates.

PMRC's key initiative is its Green Mortgage Incentive, which provides a 0.25% rate rebate for energy-efficient home construction. 

It also offers credit guarantees covering up to 40% of default risks—

Making home loans more accessible for low-income borrowers.

For more details, visit the Pakistan Mortgage Refinance Company (PMRC) page.

NBP Home Loan 

NBP offers government-backed and conventional home financing with loans up to PKR 50 million and repayment tenures of up to 25 years.

It provides financing for home purchase, construction, and renovation, with both fixed and variable interest rate options.

NBP also participates in government housing initiatives such as Mera Pakistan Mera Ghar—

Offering subsidized interest rates for low-income applicants.

Under this scheme, financing was available for first-time homebuyers, covering up to 90% of the property value—

But the program is currently suspended.

NBP follows State Bank of Pakistan (SBP) regulations, for transparent loan processing with flexible repayment options.

The bank allows co-applicants, enabling up to four individuals to combine their income for eligibility.

There are no prepayment penalties, allowing borrowers to settle their loans early without extra charges.

For more details and to apply, visit the NBP Home Loan page or contact an NBP branch near you.

UBL Home Loan 

United Bank Limited (UBL) offers flexible home financing with loans up to PKR 100 million and repayment tenures of up to 20 years.

Customers can apply for home purchase, construction, renovation, or land + construction financing.

UBL also provides a Balance Transfer Facility, allowing borrowers to transfer existing home loans from other banks.

UBL follows a floating markup rate structure linked to 1-Year KIBOR + 3.5%, with annual revisions based on market conditions.

The minimum loan size is PKR 1 million, and eligibility is open to salaried professionals, self-employed business owners, and professionals—

Provided they meet the minimum monthly income requirement of PKR 150,000.

UBL also offers the Roshan Apna Ghar scheme for Non-Resident Pakistanis (NRPs)—

Enabling overseas Pakistanis to buy property in Pakistan through repatriable & non-repatriable financing options.

Loan applicants must provide CNIC copies, salary slips, tax returns, and bank statements (covering up to two years for self-employed applicants).

UBL ensures a transparent application process with dedicated relationship managers assisting customers.

For more details and to apply, visit the UBL Address page or contact UBL at 111-825-888.

Standard Chartered Saadiq Home Finance 

Standard Chartered’s Saadiq Home Finance is a Shariah-compliant home financing solution based on the Diminishing Musharakah model. 

It allows customers to gradually purchase the bank’s share in the property while paying rent on the remaining portion.

Saadiq Home Finance offers up to 75% financing of the property value, with a maximum loan amount of PKR 100 million and tenures of up to 25 years.

Customers can choose between hybrid and floating pricing options, with rental rates linked to KIBOR.

The product sometimes features zero processing charges and provides flexible prepayment options for early ownership.

The financing is available to both Pakistani residents and NRPs (Non-Resident Pakistanis)—

Residing in Singapore, Malaysia, UAE, Bahrain, Saudi Arabia, Qatar, and Oman.

Salaried individuals must earn at least PKR 300,000 per month, while self-employed applicants must meet the same minimum income requirement.

For more details and to apply, visit the Standard Chartered Saadiq Home Finance page.

Askari Bank Home Finance 

Askari Bank offers home financing up to PKR 100 million with repayment tenures ranging from 1 to 25 years.

Customers can apply for home purchase, construction, renovation, or balance transfer from other banks.

The financing is available with fixed and variable interest rate options—  

Linked to 1-Year KIBOR + 3% for branch customers and KIBOR + 4% for non-branch customers.

The bank also participates in the Mera Pakistan Mera Ghar scheme, offering government-subsidized financing for low-income applicants.

Borrowers can top up their loan for renovations or home completion and opt for a balance transfer facility after 18 months of financing with another bank.

Eligible salaried individuals must earn at least PKR 50,000 per month (permanent employees) or PKR 60,000 (contractual employees).

Self-employed professionals (SEPs) must have a minimum income of PKR 100,000–150,000, with at least one to two years of business experience.

Loan equity requirements start at 25%, ensuring accessibility for a broad range of borrowers.

For more details and to apply, visit the Askari Bank Home Finance page.

Al Baraka Home Finance 

Al Baraka Bank offers Shariah-compliant home financing based on the Diminishing Musharakah model. 

It allows customers to gradually acquire full property ownership while paying the bank’s share rent.

Customers can apply for financing up to PKR 100 million, covering up to 80% of the property value, with a minimum financing amount of PKR 0.5 million.

The repayment tenure extends up to 20 years, ensuring affordable monthly installments.

The profit rate is linked to KIBOR, with special discounted rates for women and persons with disabilities (PWDs).

Eligible applicants can also benefit from partial and early settlement options for faster ownership.

Salaried individuals must earn at least PKR 55,000 per month—

Wwhile self-employed professionals and business owners need a minimum income of PKR 80,000.

The bank offers quick processing, flexible term rescheduling, and priority application handling for eligible segments.

For more details and to apply, visit the Al Baraka Home Finance page.

Bank Alfalah Home Finance (Ghar Asaan)

Bank Alfalah offers home financing up to PKR 100 million with a tenure of up to 25 years for home purchases, construction, renovations, or balance transfers.

The Ghar Asaan Scheme, part of the Mera Pakistan Mera Ghar initiative, provides subsidized financing for first-time homeowners.

Customers can choose between fixed-rate options for the initial years or a variable KIBOR-linked rate.

Financing covers houses up to 250 square yards (10 marla) or apartments.

Salaried applicants must be 25-60 years old with a minimum monthly income of PKR 25,000—

While self-employed individuals can apply until age 70 with a PKR 50,000 minimum income.

Up to four co-applicants can be included with full income clubbing.

Loans are available in all cities where Bank Alfalah operates—

With a minimum work history of two years for salaried individuals and three years for self-employed applicants.

Subsidized mark-up starts at 2% for the first five years, increasing to 5-9% for the next five years, depending on the property size.

After year 10, it shifts to 1-year KIBOR + 2.5% to 4%. Required documents include CNIC copies, proof of income, and property documents.

For more details and to apply, visit the Bank Alfalah Home Finance page.

What is The Eligibility Criteria for Home Financing? 

Home loan eligibility in Pakistan depends on several financial and personal factors. 

Banks evaluate income stability, creditworthiness, and repayment capacity before loan approval. 

Requirements

While criteria may vary across banks, most lenders follow standard requirements.

You can apply for a loan if you are:

✅ Pakistani citizens (residents & NRPs for specific loans)
✅ Salaried individuals with at least 2 years of job experience
✅ Applicants aged 25 to 65 years at the time of loan maturity
✅ Self-employed/business owners with 3+ years of business history
✅ Individuals with a minimum monthly income (varies by bank and loan amount)

Documentation Required

You might require documents to apply for home financing:

📌 CNIC copy
📌 Tax returns (if applicable)
📌 Property documents for verification
📌 Salary slips & bank statements (last 6 months)

Applicants who meet these requirements can apply for financing at leading banks—

Such as Meezan Bank, HBL, UBL, MCB, and others. 

Government-backed schemes may have relaxed eligibility criteria for low-income applicants.

For specific requirements, visit your preferred bank’s official website or branch.

Factors That Influence Eligibility for Home Financing

However, some factors might influence your eligibility:

🏡 Creditworthiness

A clean credit history increases the chances of loan approval.

🏡 Property Evaluation

The bank assesses the property's market value and finances 50% to 90% of its value.

🏡 Debt-to-Income Ratio (DTI)

Banks usually allow a maximum DTI of 50%, meaning your monthly loan payments should not exceed half of your monthly income.

🏡 Employment Stability

Salaried applicants must show a consistent job history, while self-employed individuals must provide business records and tax returns.

Home Loan Calculation & Estimate

Before applying for a loan, estimating monthly payments using a home loan calculator is essential. 

These tools help you:

✔ Compare financing options between different banks
✔ Determine affordability based on income and expenses
✔ Understand how interest/profit rates affect repayments

You can check your eligibility using:

👉 HBL Home Loan Calculator
👉 UBL Home Loan Calculator
👉 Meezan Bank Home Loan Calculator

Planning with a loan calculator can help you make a financially sound decision before committing to a home loan.

Save Smarter with SadaPay 💳🏡

Securing a home loan in Pakistan can be life-changing, but managing loan payments, fees, and financial planning is just as important. 

While banks offer various financing options, hidden fees, transaction costs, and high banking charges can affect your savings. 

That’s where SadaPay makes a difference!

With SadaPay’s fee-free banking, you can save more while repaying your home loan. Here’s how:

✅ Pay for property evaluations & legal fees.
✅ Send payments to banks without additional fees.
✅ No account maintenance fees or extra deductions.
✅ Carry overseas transactions with the best exchange rates.

Download SadaPay today!

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