House finance in Pakistan now comes in two very different forms: the government’s subsidised Mera Ghar Mera Ashiana scheme for first-time buyers, and the banks’ own home loan products priced off KIBOR. This guide compares what Meezan Bank, Bank Alfalah, UBL Ameen and HBL publish on their own websites, plus the State Bank of Pakistan (SBP) circular behind the subsidy scheme, checked in October 2026. Where a bank’s page leaves a figure out or contradicts itself, the guide says so instead of filling the gap. Rates change often, so use this to shortlist options and confirm the details with the bank before you commit.
Mera Ghar Mera Ashiana: The Subsidised Scheme
The SBP announced the scheme in circular SH&SFD No. 03 of 24 September 2025, and the federal government approved changes to it in 2026. The circular and later news reports give these terms.
| Item | What is published |
|---|---|
| Who can apply | First-time homeowners who are Pakistani citizens with a CNIC and do not own a housing unit in their name. UBL Ameen’s page adds that it is available once per individual. |
| What it covers | Buying a house or flat, building a house on land you already own, or buying a plot and building on it. |
| Loan size | The original circular set Tier 1 up to Rs 2 million and Tier 2 above Rs 2 million up to Rs 3.5 million. On 17 March 2026 the SBP amended the scheme, and Business Recorder reported the cap rising to Rs 10 million with a flat 5% end-user rate. |
| Customer rate | Original circular: 5% (Tier 1) or 8% (Tier 2), fixed. After the 2026 amendment, reports describe a flat 5% fixed rate. The banks price the loan at 1-year KIBOR + 3%, and the government pays the difference. |
| Tenure and subsidy period | Up to 20 years, with the markup subsidy applying for the first 10 years. UBL Ameen’s page says its bank pricing applies after year 10. |
| Down payment | Loan-to-value is 90:10, so you put in 10%. |
| Unit size | The original circular allowed houses up to 5 marla and flats up to 1,360 sq ft. Business Recorder reported the 2026 amendment raising these to 10 marla and 1,500 sq ft. |
| Fees | The circular says participating institutions may not charge a processing cost or a prepayment penalty. UBL Ameen’s page lists legal report and property valuation at actual cost. |
| Which lenders | All commercial banks, Islamic banks, microfinance banks and HBFCL. |
How much lending has happened. A Geo News report on the Executive Committee of the Economic Coordination Committee’s meeting of 27 February 2026 says banks had received over 10,594 applications worth Rs 32.288 billion, and 344 applications worth Rs 810 million had been disbursed. UBL Ameen’s scheme page says it will “start accepting applications very soon”, with no date on the page. Whether your bank is lending under the scheme today has to be confirmed with the bank.
Older scheme. An older SBP document describes a different, earlier markup subsidy scheme with its own tiers and rates. Those terms do not apply to the 2025 scheme above.
Bank Home Finance Compared
| Bank and product | Financing and equity | Tenure | Profit or markup rate (as published) | Eligibility (as published) |
|---|---|---|---|---|
| Meezan Bank, Easy Home (Islamic, Diminishing Musharakah) | Finances up to 65% of the property price for businessmen and up to 75% for salaried individuals, so 35% or 25% equity. No maximum amount is stated for residents. | Not stated for residents. NRP tenure is 3 to 20 years. | Variable: 12-month KIBOR + 3% for salaried, + 4% for businessmen, repriced annually, with a floor of 8% and a cap of 30%. A 18.99% fixed offer for 3 years is shown on the page as valid until 31 July 2024, so treat it as expired. | Pakistani national. Minimum gross income Rs 50,000 a month for salaried (Rs 100,000 for contractual) and Rs 100,000 for self-employed. Salaried need 2 years in the same field and self-employed 3 years in the business. Age at maturity 25 to 65. |
| Bank Alfalah, Alfalah Home Finance (conventional) | Home Buyer: up to 80% of property value, with no minimum or maximum amount stated. Plot and Build: up to 80%, split 50% plot and 50% construction. Build Your Home: up to 100% of construction cost. The FAQ says a minimum of 20% equity is generally required, which does not match the 100% products, and the page does not explain the difference. | 3 to 25 years generally (3 to 10 years for Home Solar Finance). | Variable, 1-year KIBOR + 3% for local salaried, + 4% for self-employed and non-resident Pakistanis. A rate break of up to 100 bps (50 bps for salaried) applies under Mera Ghar Meri Pehchaan. | Salaried: net income Rs 75,000 a month, age 25 to retirement, 2 years in a permanent job. Self-employed: net income Rs 150,000, age 25 to 70, 3 years in business. Up to two co-borrowers can combine income. Residential property only. |
| UBL Ameen, Ameen Address (Islamic, Diminishing Musharakah) | Rs 1 million minimum. Maximum Rs 50 million for purchase, construction and Islamic-to-Islamic balance transfer. The page does not state a down payment. | 3 to 20 years | 1-year KIBOR + 3.5% for both salaried and self-employed, repriced annually. | Salaried: net income Rs 25,000 a month, 1 year of experience at a known company or 2 years otherwise, not on probation. Self-employed: Rs 75,000 and 3 years in business. Age at maturity 25 to 60 (up to 65 at retirement age) for salaried and 25 to 65 for self-employed. |
At the 12-month KIBOR offer rate of 12.78% published by the SBP on 19 October 2026, a KIBOR + 3% rate works out to about 15.78%. The rate you are offered will follow KIBOR on the day you are priced and again at each repricing.
Home Finance for Overseas Pakistanis (Roshan Apna Ghar)
Roshan Apna Ghar is for holders of a Roshan Digital Account who want to buy, build or renovate in Pakistan. Read our Roshan Digital Account guide for how the account works.
| Bank | Financing | Tenure | Rate (as published) | Other published terms |
|---|---|---|---|---|
| HBL Roshan Apna Ghar (Islamic, Diminishing Musharakah) | Minimum Rs 500,000. Maximum not stated. Lien-based and non-lien options. No down payment percentage stated. | 3 to 25 years | Variable: 1-year KIBOR + 1.5%. Fixed for 5 years: 5-year PKRV + 1.5%. A second table on the page lists the rates without the 1.5%, so confirm the final margin with the bank. | HBL Roshan Digital Account holders only, one facility per customer. Age up to 60, extendable to 65. Early termination: 1% profit in year 1, nil after that. |
| Bank Alfalah Roshan Apna Ghar | Minimum Rs 500,000. No cap for Buy and Build, Rs 10 million for Renovate only. With lien, financing up to 99% of property value. Without lien, up to 75%. | 3 to 25 years | Variable, 1-year KIBOR plus a margin “as low as 1.5%” without lien. The page gives no margin for the lien option. | Processing fee Rs 4,000 plus FED. Early termination 1% in year 1, nil after. Salaried age 25 to 60, non-salaried 25 to 65. Debt burden ratio 45% of net disposable income without lien. Lien option requires 105% of the finance amount held in the Roshan account or Naya Pakistan Certificates. |
Meezan’s Easy Home page also lists a non-resident Pakistani option, with financing from Rs 0.5 million to Rs 50 million, tenure of 3 to 20 years and a minimum income of Rs 250,000 a month.
Costs Beyond the Monthly Instalment
Processing and legal costs. Meezan lists processing charges of Rs 8,000 plus 16% FED, with the legal report and property valuation at actual cost. Bank Alfalah’s Roshan Apna Ghar lists Rs 4,000 plus FED. UBL Ameen and Bank Alfalah’s local product point to a schedule of charges for amounts.
Insurance and Takaful. Bank Alfalah says life and property insurance is included, with the first-year premium paid in advance and later years monthly. Meezan lists Takaful life cover but does not state the amount.
Early settlement. UBL Ameen lists 8% of the outstanding Musharakah units in year 1, 5% in year 2 and 3% from year 3. Meezan allows early unit purchase after a stated period and notes that units may be sold at a 3% higher price if the property’s market value rises. HBL and Bank Alfalah (Roshan) list 1% in year 1 and nothing after. Bank Alfalah’s local product allows up to two balloon payments a year capped at 20% of the outstanding balance, with a 5% penalty on a balloon in the first year.
Property tax and registration. Stamp duty, registration fees and advance tax differ by province and by whether you are a tax filer. They are not set by the banks, so check them separately before you budget. Our tax filer guide explains how filer status is decided.
Documents Banks Ask For
Everyone: application form, CNIC (or NICOP or POC for overseas applicants), photographs, proof of income and property documents.
Salaried: current salary slip or employment letter and bank statements (6 months at Bank Alfalah, 12 months at UBL Ameen), and an employment certificate confirming experience.
Self-employed: 1 year of bank statements and tax returns at Bank Alfalah, 12 months of bank statements and 24 months of tax documents at UBL Ameen, and proof of how long the business has run.
Overseas applicants: passport, residence or work permit and a credit report from the country of residence at Bank Alfalah. Banks may ask for more.
How to Choose
If you are a first-time buyer, ask your bank first whether it is lending under Mera Ghar Mera Ashiana. At a flat 5% fixed for the first 10 years the scheme is priced far below the 15% or so that KIBOR-based loans work out to today, and the 10% equity requirement is also lower than the 20% to 35% at the banks above. If you do not qualify, compare the total you will pay over the whole tenure, not just the first instalment. Check whether the rate is fixed or floating, because every KIBOR-based product above reprices as KIBOR moves. Compare early settlement terms before you commit if you expect to repay early. Meezan and UBL Ameen are Islamic products that price against KIBOR, so the rental still moves with the market.
Frequently Asked Questions
Who can get Mera Ghar Mera Ashiana?
First-time homeowners with a CNIC who do not own a housing unit in their name. UBL Ameen adds that it is once per individual.
How much down payment does the scheme need?
The circular sets loan-to-value at 90:10, so 10%.
What is the markup under the scheme?
The original circular fixed it at 5% for loans up to Rs 2 million and 8% for loans above that up to Rs 3.5 million. After the March 2026 amendment, Business Recorder reports a flat 5% fixed rate.
What is the maximum loan under the scheme?
Rs 3.5 million in the original circular, and up to Rs 10 million after the March 2026 amendment according to Business Recorder.
What is the minimum down payment for a normal bank home loan?
It depends on the bank and product. Meezan finances up to 65% or 75% (35% or 25% equity), Bank Alfalah’s FAQ says 20% is generally required, and UBL Ameen’s page does not state it.
Can an overseas Pakistani buy a house with a bank loan?
Yes. HBL and Bank Alfalah offer Roshan Apna Ghar to Roshan Digital Account holders, and Meezan lists a separate non-resident Pakistani option.
Is Islamic home finance interest-free?
Islamic banks use Diminishing Musharakah, where the bank co-owns the property and you pay rent and buy its share over time. Meezan and UBL Ameen price the rent against KIBOR, so compare the total amount payable.
What This Guide Does Not Cover
This version covers Meezan Bank, Bank Alfalah, UBL Ameen, HBL (Roshan only) and the Mera Ghar Mera Ashiana scheme. HBL’s regular home loan, Allied Bank, Bank Islami, Faysal Bank, MCB, Askari Bank, Bank AL Habib, JS Bank, microfinance banks and HBFCL are not covered, because their own pages were not checked for this version.
This guide reflects the banks’ own websites, the SBP circular and news reports as checked in October 2026. Rates, offers and eligibility change often, so confirm every figure with the bank before applying. This is general information, not financial advice.
