For years, home ownership has been one of the most popular and widely chosen paths to wealth for most of us. Nevertheless, drastic changes in socioeconomic and demographic variables over the past few decades have made securing affordable housing a challenge for almost everyone.
But for many who think they can’t afford the dream of owning their home, there is some good news: you probably can.
If you are among thousands of people who are ready to take the plunge into home ownership but are unsure if you would ever qualify for a home loan, HBFC Ghar Scheme is what you’re looking for.
About HBFC Ghar Scheme
The House Building Finance Company Limited (HBFC) offers financing for home construction and purchases in Pakistan. These financing facilities are aimed at providing financing for the housing needs of low and middle-income citizens.
HBFC Ghar Scheme: Types of Home Loan Products
The HBFC Ghar Scheme offers three separate home loan products. These products have been designed based on the varying housing needs of the population and are, namely:
- Ghar Pakistan
- Ghar Pakistan Plus
- Ghar Sahulat
A. General Features
- Tenure: The standard HBFC Ghar Scheme home loan tenure runs from 03 to 20 years.
- Co-applicant Facility: The products also come with the ‘Co- applicant’ or ‘Guarantor’ facility. Here, the company requires the co-applicant to be an immediate family member. Additionally, the guarantor must be a family member who has inheritance/ownership rights over the property being mortgaged.
- Income Clubbing: The products allow applicants to add their co-applicants’/guarantors ’individuals incomes to their total income. This is called ‘Income Clubbing’. The HBFC Ghar Scheme further offers insurance coverage for death and disability, along with property insurance.
- Balloon Payments: There is an additional facility for balloon payments. This allows customers to pay early settlements with no extra charges.
HBFC’s profit rates differ for all three products. The HBFC application forms are available all across the country in more than 50 branches.
B. Eligibility Criteria
| PARTICULARS | CRITERIA |
| Age limit for salaried persons | 18-57 years |
| Age limit for self-employed &businesspersons | 18-62 years |
| Experience req. for salaried persons | 1 year |
| Experience req. for self-employed & businesspersons | 2 years |
| Income Criteria for Ghar Pakistan | Up to PKR 100,000/- |
| Income Criteria for Ghar Pakistan Plus | Up to PKR 175,000/- |
| Income Criteria for Ghar Sahulat | Verifiable net disposable monthly income |
HBFC Home Loan Products: Features
1. Ghar Pakistan
Features
- Financing up to PKR 4.5 million
- 12 percent per annum profit rate
- The loan-to-value ratio of 80:20
- Debt burden ratio -up to 45 percent of net monthly income
- Balance transfer facility
- The application processing fee is PKR 2,000 for financing up to PKR 1,000,000
- The application processing fee is PKR 5,000 for financing above PKR 1,000,000
2. Ghar Pakistan Plus
Features
- Financing up to PKR 8.8 million
- 13 percent per annum profit rate
- Loan-to-value ratio (LTV) of 85:15
- Debt burden ratio (DBR) -– up to 50 percent of net monthly income
- The application processing fee is PKR 2,000 for financing up to PKR 1,000,000
- The application processing fee is PKR 5,000 for financing above PKR 1,000,000
3. Ghar Sahulat
Features
- Home financing up to PKR 25 million
- 3.25 percent plus Karachi Interbank Offered Rate (KIBOR) for salaried individuals
- 3.50 percent plus Karachi Interbank Offered Rate (KIBOR) for self-employed professionals and businesspersons
- Loan to value ratio (LTV) of 70:30
- Debt burden ratio – up to 50 percent of net monthly income
- Balance transfer facility
- Application processing fee is PKR 3,000 for financing up to PKR 500,000
- Application processing fee is PKR 8,000 for financing between PKR 500,000 to 2,500,000
- Application processing fee is PKR 12,000 for financing above PKR 2,500,000
A Further Word on HBFC
HBFC is a nationally trusted Financial Development Institution. Its capital stock is held by State Bank of Pakistan and the Government of Pakistan. HBFC provides monetary assistance at the lowest local rates. It is the oldest housing finance institution in Pakistan to provide loans to the middle and lower middle income segment of the society. Recently, HBFC has launched a new product, in cooperation with SBP, named as “HBFC KHAAS” to cater to the needs of special segments of the society. The product offers lowest rates to own a home for the deserving people.
Contact Information
You can access more information regarding the scheme on the HBFC website, or by calling on: +92 21 35641711-15, 0800 42325.
