Mortgage Loan in Pakistan – Complete Guide 2025
Owning a house is one of the biggest dreams for families in Pakistan. However, with the rising cost of real estate, buying a home without financial assistance is nearly impossible for many people. That’s where a mortgage loan in Pakistan comes in. A mortgage loan allows individuals to borrow money from a bank or financial institution by keeping their property as collateral. The amount can be used to buy a house, build a home, or renovate an existing property.
In 2025, the demand for housing finance in Pakistan is increasing rapidly. Both conventional mortgage loans and Islamic housing finance options are available, with banks competing to offer the best rates. The State Bank of Pakistan (SBP) has also introduced policies to make housing affordable for middle-class and salaried individuals.
The article will explain everything you need to know about mortgage loans in Pakistan, including the best lenders, Islamic housing loans, loan against property, eligibility, and the application process.
Also Check: Prime Minister Loan Scheme Guide
What is a Mortgage Loan?
A mortgage loan is a long-term loan given by banks or housing finance companies where the borrower pledges a property as security. In return, the bank provides financing that can be repaid in monthly installments.
Types of mortgage loans in Pakistan include:
- Home Purchase Loan – Buy a ready-made house or apartment.
- Home Construction Loan – Build a new house on your plot.
- Home Renovation Loan – Renovate or extend your existing property.
- Loan Against Property – Use property as collateral to get funds for personal/business use.
Best Mortgage Lenders in Pakistan 2025
If you’re searching for the best mortgage lenders near me, here are the top banks and institutions in Pakistan offering home financing:
1. National Bank of Pakistan (NBP)
- Offers Mera Pakistan Mera Ghar (MPMG) scheme.
- Financing up to PKR 10 million.
- Long repayment tenure up to 20 years.
2. Meezan Bank (Islamic Home Finance)
- Leading Islamic housing loan provider in Pakistan.
- Shariah-compliant Diminishing Musharakah model.
- Financing for purchase, construction, and renovation.
3. Habib Bank Limited (HBL)
- Provides conventional mortgage loans.
- Loan tenure up to 25 years.
- Flexible repayment options.
4. Bank Alfalah
- Offers Alfalah Home Finance.
- Financing for salaried & self-employed individuals.
- Quick processing time.
5. Dubai Islamic Bank Pakistan
- 100% Shariah-compliant mortgage loans.
- Easy approval process.
- Competitive profit rates.
6. House Building Finance Company (HBFC)
- Oldest housing finance institution in Pakistan.
- Focused on low and middle-income groups.
- Government-supported schemes available.
Islamic Home Loan in Pakistan
Many people in Pakistan prefer Islamic housing loans instead of conventional interest-based mortgages. These are based on Shariah-compliant financing models, mainly:
- Diminishing Musharakah – Joint ownership between bank and customer. The customer gradually buys the bank’s share until full ownership.
- Ijara (Leasing) – The bank buys the property and leases it to the customer for an agreed rental amount.
Top Islamic housing finance providers:
- Meezan Bank – Easy Home
- Dubai Islamic Bank
- Bank Islami
- Al Baraka Bank
Loan Against Property in Pakistan
Apart from home purchase loans, many banks also offer loan against property in Pakistan. In this option:
- You pledge your existing property as collateral.
- The bank provides a loan based on the property’s market value.
- Loan can be used for business expansion, education, or personal needs.
Popular banks offering loan against property:
- HBL
- UBL
- Bank Alfalah
- Allied Bank
Eligibility Criteria for Mortgage Loan in Pakistan
To qualify for a home loan, applicants must meet the following conditions:
- Nationality: Pakistani citizen (resident or overseas).
- Age Limit: 25 to 60 years (salaried), up to 65 years (self-employed).
- Income: Minimum PKR 30,000 – 50,000 monthly (varies by bank).
- Employment: Salaried (minimum 2 years job) or self-employed (3 years business proof).
- Credit Score: Clean record with no loan defaults.
- Property Documents: Clear title, approved maps, and valuation report.
Mortgage Loan Process in Pakistan
Here’s the step-by-step process for applying:
- Research & Compare – Check mortgage loan offers from different banks.
- Submit Application – Fill in loan form with CNIC, income proof, and property details.
- Bank Evaluation – Bank verifies income, employment, and property value.
- Approval & Agreement – Loan is sanctioned after eligibility check.
- Disbursement – Funds are released, and repayment begins via monthly installments.
Advantages of Mortgage Loan in Pakistan
- Own a home with easy installments.
- Long repayment tenure (up to 25 years).
- Both Islamic and conventional options available.
- Government support through Mera Pakistan Mera Ghar scheme.
- Tax benefits on housing finance (in some cases).
Challenges in Mortgage Loans
- High interest/profit rates (KIBOR-linked).
- Complicated documentation.
- Property valuation issues.
- Limited awareness about housing finance.
Future of Mortgage Financing in Pakistan (2025 & Beyond)
The mortgage sector in Pakistan is still in its growth stage compared to developed countries. However, with government initiatives like Naya Pakistan Housing Program (NPHP) and SBP’s housing finance policy, more middle-income families are expected to benefit. Digital banking and online loan calculators are also making the process easier.
By 2030, mortgage financing is projected to cover 10% of Pakistan’s GDP, creating opportunities for banks, real estate, and homebuyers.
Frequently Asked Questions (FAQs)
Q1: What is the maximum loan tenure for mortgage loans in Pakistan?
Most banks offer loan tenure up to 20–25 years.
Q2: Can overseas Pakistanis apply for a home loan?
Yes, many banks like HBL, Meezan Bank, and UBL offer financing for Overseas Pakistanis.
Q3: Which bank offers the best Islamic home loan in Pakistan?
Meezan Bank Easy Home is considered the most popular Shariah-compliant housing loan.
Q4: What documents are required for applying?
CNIC, income certificate/salary slips, bank statements, property documents, and photographs.
Q5: What is the difference between mortgage loan and loan against property?
A mortgage loan is for buying/building a house, while loan against property can be used for business, education, or personal needs.
References
- State Bank of Pakistan – Housing Finance Policy
- Meezan Bank – Easy Home Financing
- HBFC – Official Housing Finance
- National Bank of Pakistan – Mera Pakistan Mera Ghar
