Instalment breakdown of govt’s affordable housing initiative unveiled

Islamabad: The federal government, State Bank of Pakistan (SBP) and the Naya Pakistan Housing and Development Authority (NAPHDA) have publicised the payment plan and instalment breakdown for the markup subsidy announced for the ‘Mera Pakistan – Mera Ghar’ initiative, as per an advertisement published in a major newspaper today (January 20).

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As per the details revealed, the government is offering home loans of up to PKR 5 million for a tenure of 10 to 20 years – at a subsidised markup rate of 5% (for up to 5-marla NAPHDA and Non-NAPHDA Tier 1 and 2 housing projects) and 7% (for Tier 3, Non-NAPHDA housing projects).

The monthly instalment for the first five years of the 20-year loan facility is set between PKR 6,600 and PKR 38,765 per month. The following image will offer you a better overview of the housing finance facility being offered by the government:

Individuals, who want to avail this subsidy facility are requested to visit a domestic commercial bank branch of their choosing or the office of the House Building Finance Company (HBFCL).

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Reportedly, the government has allocated over PKR 33 billion for this facility. Also, PKR 300,000 cost subsidy will be offered to the first 100,000 housing units (under NAPHDA projects). Moreover, there is a 90% tax waiver on the construction of these units and exemption of withholding taxes on several construction materials. Not to mention that the government has also reduced the import duties for machinery and plants.