How to apply for a mortgage in Pakistan
How to apply for a mortgage in Pakistan
The mortgage application process in Pakistan is regulated and requires detailed documentation. While salaried applicants are generally processed faster, self-employed and freelancers should be prepared for extra verification steps.
Application process breakdown
Initial inquiry: Visit a bank branch or apply online to check eligibility and maximum loan amount.
Document submission: Submit CNIC, income proof, bank statements, and property documents.
Appraisal and legal check: The bank assesses the property value and ensures clear title and documentation.
Loan approval and offer: After verification, you'll receive an official sanction letter with terms and EMI plan.
Disbursement and registration: Funds are released to the seller after signing the agreement and registering the mortgage deed.
Expect a processing time of 2 to 4 weeks. Keep all records organised and follow up regularly. Consider working with a DSA (Direct Sales Agent) or home finance consultant to streamline the process, especially for government-backed loans.
Checklist for smooth approval
Ensure your documents are valid and updated: CNIC, income slips, tax returns, and utility bills. Avoid bounced cheques and maintain account balance. A co-applicant can boost approval chances and loan limits. Always read terms related to repossession, markup revision, and late payment penalties.

Pakistan’s mortgage market is evolving amid economic challenges, with each regulatory tweak offering a glimpse into untapped potential and unique financial narratives.
How to compare mortgage offers in Pakistan
How to compare mortgage offers in Pakistan
Comparing home loans in Pakistan requires more than looking at the markup rate. Consider all charges, conditions, and flexibility options. Focus on total monthly instalment burden, upfront costs, and the fine print regarding early repayment.
Key points to compare
Markup type and rate: Fixed or floating? Understand how the rate adjusts and what benchmarks are used (e.g. KIBOR).
Processing fees: Usually 1%–2% of the loan amount, plus legal and valuation charges.
Insurance requirements: Property and life insurance may be compulsory, with premiums bundled into monthly instalments.
Early settlement charges: Some banks impose penalties for paying off the loan early—check the policy.
Top-up and refinance options: Important if you want future flexibility for renovations or better rates.
Use tools on bank websites or comparison portals like PakWheels or Smartchoice.pk. Compare net disbursed amounts, instalment start dates, and grace periods. Look for promotional deals during Ramadan, New Year, or budget seasons.
Negotiation tips for better rates
Maintain a clean eCIB (credit bureau) record, reduce other liabilities, and show stable income. Banks may waive processing fees or offer discounts if you apply during campaigns or via preferred employers. Use pre-approvals to strengthen your position.
Understanding mortgage types in Pakistan
Understanding mortgage types in Pakistan
In Pakistan, mortgages are often referred to as “home loans” or “home financing.” Both conventional and Islamic options are available through commercial banks and Islamic financial institutions. Mortgages in Pakistan are governed by policies of the State Bank of Pakistan (SBP), and recent government schemes have made home ownership more accessible, especially for first-time buyers.
Main types of home financing in Pakistan
Conventional home loan: Offered by banks with fixed or floating markup rates. Based on interest (Riba).
Islamic home financing: Shariah-compliant options such as Diminishing Musharakah, where the bank co-owns the property and the buyer gradually buys it out.
Fixed markup financing: Markup rate remains the same throughout the loan term. Best for long-term stability.
Floating markup financing: Linked to KIBOR (Karachi Interbank Offered Rate). Markup may increase or decrease periodically.
Government-subsidised loans (e.g. Mera Pakistan Mera Ghar): Special schemes for low and middle-income families with reduced markup and easier terms.
Loan tenure typically ranges from 5 to 25 years, and financing is usually up to 80–85% of the property's value. Islamic financing has gained popularity for its ethical and Riba-free structure. First-time buyers and salaried individuals have greater access under subsidised schemes.
Eligibility and documentation
Applicants must be Pakistani citizens aged 25–60, with regular income or business income. Basic requirements include CNIC, salary slip or income proof, bank statements, tax returns (where applicable), and property-related documents. A good credit history and verified income increase approval chances.

Last Update
31.3.25
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HOW TO COMPARE PAKISTANI MORTGAGES: TYPES AND HOW TO APPLY
Looking to buy a house in Pakistan? This guide explains everything about mortgage options—commonly known locally as home financing. Whether you're interested in conventional or Islamic loans, fixed or floating markup, we’ll break down eligibility criteria, SBP policies, and how to navigate the application process. Learn how to compare offers from banks like HBL, Meezan, Bank Alfalah, and MCB, and make informed decisions with full transparency.