Mera Pakistan, Mera Ghar Scheme

Askari Bank offers Government’s Mark-up Subsidy Scheme for Housing Finance.

Particulars Criteria
Eligible Customers Salaried, Self Employed Individuals
Purpose of Finance
  • First purchase of a newly constructed residential property (Apartment/Flat/House)
  • Purchase of Plot + Construction
  • Construction of housing unit on already owned plot
  • Expansion/Extension of existing Housing Unit

(First purchase means first transfer of the house/apartment/ flat.
New house/ apartment/ flat means a unit not more than 1 year old from the date of application, as established by Completion Certificate)

Approved Cities Whole of Pakistan
Eligibility Criteria
  • All men/women holding CNIC
  • First time home owner.
  • The borrower must not have availed housing finance previously from any Bank/DFI (as per latest eCIB/Data Check)
  • One individual can have subsidized house finance facility under the scheme, only once.
  • Only for construction and first purchase of newly constructed affordable housing units.
Size of Housing Unit (Apartment/House) Tier 1 (NAPHDA Projects only)
Housing Units/Flats/Apartments of up to 125 sq. yards (upto 5 Marla) with covered area of up to 850 square feet.
Tier 2 (Non-NAPHDA Projects)
Housing Units/Flats/Apartments of up to 125 sq. yards (5 Marla) with covered area of up to 850 square feet.
Tier 3 (Non-NAPHDA Projects)
Housing units of more than 125 sq. yards up to 250 sq. yds (10 Marla) or Apartment with covered area from more than 850 square feet to 1,100 square feet.(NAPHDA – Naya Pakistan Housing & Development Authority)
Maximum Price of Housing Unit Maximum price (Market Value) of a single housing unit at the time of approval of financing, shall be as follows:
Tier 1 – Rs. 3.5 Million
Tier 2 – Rs. 3.5 Million
Tier 3 – Rs. 6.0 Million
Maximum Finance Amount Tier 1 – Rs. 2.7 Million
Tier 2 – Rs. 3.0 Million
Tier 3 – Rs. 5.0 Million
Tenure of Loan 10/15/20 years, depending on choice of the customer
Mark-up Rates/End User Pricing
Description Tenor
Upto 10 Years
Tenor
Exceeding 10 Years
Tier – 1 First 5 Years – 5%
Next 5 Years – 7%
1 Year KIBOR + 2.5%
Tier – 2 First 5 Years – 5%
Next 5 Years – 7%
1 Year KIBOR + 4%
Tier – 3 First 5 Years – 7%
Next 5 Years – 9%
1 Year KIBOR + 4%
Minimum Monthly Net Disposable Income/Take Home Income
  • Permanent Salaried Employees including Govt. Employees/Pensioners
  • Contractual Employees
  • Average Monthly Balance for Self Employed Individuals
Rs.40,000/-

Rs.45,000/-
Rs.50,000/-

Minimum Equity Requirements Tier 1 – 10%
Tier 2 – 10%
Tier 3 – 15%
Processing Fee Rs.6,000/-
Balloon Payment/Early Settlement Charges Nil
Other Charges Charges other than mark-up shall be applicable as per AKBL’s prevailing Schedule of Charges

To see list of designated branches, please click here

  • Application Form (click here to download)
  • Copy of Valid CNIC
  • Salary Slip/Proof of Income
  • Last 6 months Bank Statement
  • Copies of Title Documents.
  • Any other document required by the Bank.
Loan Amount Tier Tentative Installments (20 Years)
1st 5 Years Next 5 Years > 10 Years
1,000,000 Tier-1 6,600 7,501 8,797
Tier-2 6,600 7,501 9,483
Tier-3 7,753 8,749 9,962
2,000,000 Tier-1 13,199 15,002 17,595
Tier-2 13,199 15,002 18,966
Tier-3 15,506 17,497 19,923
3,000,000 Tier-2 19,799 22,503 28,448
Tier-3 23,259 26,246 29,885
4,000,000 Tier-3 31,012 34,995 39,847
5,000,000 Tier-3 38,765 43,744 49,808

Financing under the facility can be utilized for purchase of plot?
A plot of land can only be purchased under the facility if a house is to be constructed on the plot. Financing is meant both for purchase of land and construction, thereon provided all other terms and conditions of the facility including maximum price of house and maximum loan under the relevant tier are complied with.

How can the first time home ownership be established?
In order to establish first time home ownership, financing bank will obtain an undertaking to the same effect from its borrower/customer with necessary provisions for termination of subsidy and other penalties, in case it is established at a later stage, that the borrower/ customer owned a house at the time of application for availing subsidy facility.

Is the financing also available for purchase of flat?
Yes, financing will be available for purchase of flat which meets covered area requirements specified for ‘apartment’ under the facility.

Is the financing for expansion/extension in the existing housing unit allowed?
Yes, financing will be available for expansion/extension of existing housing unit provided the housing unit after expansion/extension falls within the criteria specified under the facility.

Can financing under the scheme be utilized for renovation of the existing residential unit?
No, financing for renovation of existing housing unit will not be allowed under the facility.

Is bank staff eligible to avail financing under this facility?
No, bank staff is not eligible under the facility.

Is banks’ third party staff eligible under the scheme?
Yes, banks’ third party staff will be eligible under the facility.

Are contractual employees of banks eligible for financing under the scheme?
Contractual employees of banks who are below officer grade and are not eligible to avail staff housing finance are eligible for financing under the Scheme.

Is staff of Microfinance banks eligible?
Yes, staff of Microfinance banks will be eligible under the facility.

In case if a bank staff is NOT eligible under their respective HR house loan policy/facility (for whatever reason), can such employees of the bank avail this scheme?
No, permanent employees of the bank are not eligible under the scheme.

What does new house mean?
New house/ apartment/ flat means a unit not more than 1 year old from the date of application, as established by Completion Certificate.

Where “Completion Certificate” is NOT available, how we can gauge age of property?
In such areas where completion certificate is not available, valuation certificate issued by external valuers may be considered.

What does first purchase mean?
First purchase means first transfer of the house/apartment/flat.

If the property is being sold out in 1 year to 2nd owner, can the 2nd owner apply for financing under this facility?
Financing is available under the scheme to the borrower at the time of first transfer of title document.

How much income of co-borrower can be clubbed and how many co-borrowers/applicants are allowed?
In case of co-applicants, 100% income of co- applicants may be clubbed for credit assessment. Up to four co-applicants are allowed for a single housing unit.

While availing the mark-up subsidy, is it allowed to sell or rent out the residential unit?
Home owner will not be allowed to sell the housing unit before expiry of 5 years from the date of acquisition. Further, during this period, he/she will not be allowed to rent out financed housing unit.

What is the difference between Tier 1 (T1) and Tier 2 (T2)?
The residential units announced by NAPHDA fall under Tier 1 (T1). All other residential units with the same specifications/measurements fall under Tier 2 (T2).

What would be the size of housing units under Tier 3 in terms of Marla?
Housing units under Tier 3 are required to be greater than 5 Marla but up to 10 Marla.

Is there any covered area requirement for house in Tier 3 as covered area is only mentioned against apartment/ flat?
The covered area requirement for house under Tier 3 is the same as it is for apartments/ flats that fall under Tier 3.

In case the plot size of housing unit is 5 Marla but the covered area is more than 850 square feet, what would be its classification in terms of Tiers defined in the scheme?
The housing units of up to 5 Marla with covered area of more than 850 square feet and upto 1,100 square feet will be covered under Tier 3 (T3).

If the price of housing unit is greater than Rs. 3.5 million (say Rs. 4.0 million) but size of housing unit is under Tier 2, i.e. upto 5 marla with covered area upto 850 sq/ft, will it fall under Tier 2 or Tier 3 & why?
It will fall under Tier 3. For a house/ flat/ apartment to be eligible for under particular Tier, all criteria under that Tier has to be met. If any of the criteria exceeds prescribed limit, financing will fall under higher Tier.

What Loan-to-Value (LTV) ratio should be observed while extending financing under the scheme?
The housing finance under Tier 1 and Tier 2 shall be provided at a maximum LTV ratio of 90:10 whereas it is 85:15 for Tier 3.

Will the mark-up subsidy be available even after the loan is classified as loss?
Mark-up subsidy will be discontinued on categorization of a loan as “Loss”.

Is unequal monthly installment for the repayment of loan allowed under the scheme?
The repayment of financing under this Facility will be in equal monthly installments.

Will there be any prepayment penalty?
In case of early payment, banks will not charge penalty to the customer.

Which KIBOR shall be used for loan pricing?
The KIBOR used for pricing will be one year KIBOR to be reset every year.

Is the pricing spread for banks mentioned in the scheme fixed for each Tier?
The spread mentioned in the scheme for each Tier is the maximum spread. Banks may opt for less spread.

Can banks obtain documents in addition to checklist provided by PBA?
The financing banks will not require borrowers to provide documents in excess of standard checklist of documents circulated by Pakistan Banks’ Association.

Is it right to say that the financing tenor under the facility is up to 10 years with flexibility to go up to 20 years, depending upon choice of customers?
It is the other way round. The financing tenor is up to 20 years with the flexibility of choice of the customer.

What is the minimum financing tenor under this scheme?
Minimum financing tenor under the scheme is 10 years.

Is NRP eligible under this scheme either as a main applicant or co-applicant?
The financing can be extended to an NRP holding CNIC. However, financing bank has to adhere to all relevant regulations including Foreign Exchange Regulations.

In case of both salaried & non-salaried individual working in an informal sector, how can a minimum required tenor of job & business be ascertained in the absence of any formal document?
There is no regulatory requirement of minimum tenure for job/ business of a borrower.

Can this facility be terminated/paid-off at any point of time say before 5 years or there is any minimum terminated/pay-off period.
Facility can be terminated/paid-off by borrower at any point in time. Further, financing banks will not charge any prepayment penalty in case of early repayment by the borrower.

Is there any maximum income criteria?
There is no such regulatory requirement.

If applicant holds an agricultural land, can he/she apply under this scheme?
Scheme does not bar such arrangements, provided all other Federal/ Provincial Governments’ rules & regulations are observed.

In case where both spouses are working, can they both apply on their own?
Both spouses can apply. However, only one of the spouse can avail financing under the scheme.

What is the subsidy mechanism for this scheme?
State Bank will provide procedure of claiming subsidy separately.