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Home finance enables you to buy your dream home or renovate your existing home anyway you want. However, many people are unaware about the process of getting home loans from banks and thus end up saving the amount all their lives only to find out that the prices have gone up further.
In this article, we tried to make it easy for our readers to apply for home loans by listing down not only the banks that give home loans in Pakistan, but also the process of getting home loans, documents required, and eligibility criteria.
Following is the list of Islamic Banks in Pakistan that offer home loans or home finances:
Following is the list of conventional banks that offer home loans:
Eligibility criteria for home loans varies from bank to bank, but generally all banks assess the eligibility of an applicant based on certain parameters. We have compiled a general eligibility criteria that most banks follow to help you determine if you can apply for a home loan or not.
An applicant will be considered eligible for a home loan if:
This is the basic eligibility criteria, however banks will also take into account your credit history and other factors before granting you a home loan. So before selecting the bank to apply for a home loan, you should properly research all the requirements of that particular bank.
The most common documents required to apply for a home loan are:
The process to apply for a home loan is not that difficult, just gather all the required documents and choose your bank from the given list. Generally, you’ve to follow the below mentioned process to apply for home loan:
Home loan interest rates are usually calculated on the basis of total loan amount, applicable KIBOR and banks’ margin and profit rate. Home loan interest rates are generally revised after 6 months or every year. However, borrower should keep in mind that home loan interest rates do not include other charges or commitments like legal charges, late fees, life insurance, property insurance, processing and appraisal charges and others. So before deciding to take a home loan, always calculate interest rates and other charges.