Karachi: The State Bank of Pakistan (SBP) on Friday announced another housing finance facilitation for the buyers interested in under-construction projects, according to news sources. As per the new policy, the buyers may avail housing finance in the project where the builder or developer hasn’t availed construction financing.
The SBC has relaxed the requirement of builders/developers to avail construction financing to further facilitate homebuyers to avail financing against their housing units. In such cases, the builder or developer will need to specify a mortgage charge over the project’s land in favour of the bank of Development Finance Institution (DFI) through an agreement. Once the project is completed and the housing units are transferred to the purchasers, the mortgage charges will be vacated. However, the builder/developer will comply with all the provisions of Guidelines for Financing of Housing Units in Under-Construction Projects.
Any bank or DFI can lend housing finance to a buyer with housing units in such projects, but in case the borrower wants to avail loan from a bank or DFI different from the mortgagee bank or DFI, then the borrower will need a no-objection certificate (NOC) from the latter. Additionally, the financing bank/DFI of such homebuyers will need to sign an agreement with the mortgagee bank/DFI to secure its risk.
The guidelines of the policy dictate that the builder/developer will need to get a signed consent form for the customers who wish to borrow finance from their own sources without availing mortgage finance. These consent forms will be submitted to the bank or DFI in original by the developer/builder.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
