To own a house is everyone's dream around the world but it becomes difficult to meet this dream in developing countries like Pakistan where most of the people are successful to live in their own house in the late '50s. Buying a plot and construct on it by the comfort of time and budget is a trend in Pakistani housing industry. House loans from Pakistani banks to construct a house or to buy a pre-constructed unit is not at all popular. People have concerns about house loans and about mortgage from banks. It is of important note that would Imran Khan Naya Pakistan house loans on the lower interest rate will compel people to trust on Pakistani banks for house loans. People in Pakistan prefer to buy plots and construct it by the convenience of budget and time instead of buying a fully constructed house or taking house loans. Due to high inflation rates and low income, it becomes difficult for anyone to construct a house at a young age with other expenses of the family. People pool committees, buy prize bonds, keep defense saving certificates, or simply wait for the provident fund on retirement to construct a house.
Keeping in view the housing need in Pakistan, Naya Pakistan housing scheme seems to aim in two dimensions to curtail the pressure of the housing sector: one is the government will build houses and flats and sell it to the public at lower market prices. The payments of constructed units will be divided into reasonable installments. This can be taken as a form of leasing or mortgage a house.
The other face which is apparently more appealing in the Naya Pakistan housing project, according to Pakistani set up is house loans to construct a house, on lower interest rates as about 5% to 7%. People are eagerly waiting for the Pakistani banks to announce house construction loans under the Naya Pakistan housing scheme. Almost all leading Pakistani banks are working on it and house financing on the lower interest rates will be announced by Nov, 20. People who own a plot of 5 marla, 7 marla, and 10 marlas will be able to get house loans up to 50 lakhs on 5% to 7% interest. Of course, banks will ask for guarantees and the usual procedure of bank loan will be followed. A lower interest rate is a sigh of relief for many Pakistani who own a piece of land but don't have resources to build on it.
Buying a fully constructed house on installments through mortgage is not a popular "trend" in Pakistan. Whereas in the Western world there is not the concept of buying a house on cash but people go for lease and continue to pay it for years as rent. If more people will buy houses through a mortgage in Pakistan, once Pakistani banks and customers build trust in each other, than this "trend" will also be followed in Pakistan.
We can say that the Naya Pakistan housing scheme will build trust between banks and the public. I ran Khan is working hard on easing the laws of house financing and constructing hassle and barriers, which ultimately benefits the banks and people both. One window operation will relax the people from the fatigue of running here and therecompleteting documents and necessary requirements.
Mortgage lending
is a long-term borrowing against some guarantee like a plot; house, saving
certificates, gold, or agricultural land. Your asset will be pledged for time,
you’re paying your loan. Banks keep your valued property with them as assured
that you’ll repay your loan in time or they can take charge of your property
solely. The process of mortgage through a bank is really complicated and covered in ambiguity laws in Pakistan. Naya Pakistan housing scheme is looking to fabricate flexibility in-laws.
To repossess
your pledged asset from banks after payment of loans, anyone has to go through the legal process to verify ownership. The process is expensive in Pakistan.
Banks
also ask for the real income of borrowers to know how it is going to repay a loan that is called cash flow. Next, they check the credit card history of the borrower. Banks also check the true market value of
assets to be pledged as in Pakistan, there are fake files, fake plots, or even disputed property which is presented to be pledged which banks need to verify
in advance.
Pakistani
bank's policies look for high-profit loans that don’t go in favor of the borrower
in most cases. Pakistani banks also don't trust the borrowers to avoid cheating in the future. At least an interest rate of 9% to 13% is taken on house loans which burdened the borrowers. Here banks are asked to revise the policies of house loans under Naya Pakistan housing projects.
Why people don't buy pre-constructed houses in Pakistan?
The other
reason for not Pakistani people look for a mortgaged house is to avoid "interest" being a Muslim obligation.
Cheating or bad quality work is another reason to avoid buying readymade houses or house loans in Pakistan. Houses are constructed by "Thekedars" and people don't believe in the construction material, wiring, and other outfits to be up to mark and prefer to make houses on their own.
Banks that are providing house loans under the Naya Pakistan housing scheme:
- HBL
- Meezan bank
- Askari Bank
- Standard Chartered
- Al Falah bank
- SME bank
- National bank of Pakistan
- Bank Al Habib
An estimated monthly installment for 5 marla houses will be from Rs 30,000 to Rs 50,000 per month for a period of 15-20 years in Naya Pakistan house loans.
We hope that house financing through the Naya Pakistan housing project will open a new era in the construction industry of Pakistan.