LAHORE: The government has increased the housing loan limit for low-cost houses from Rs 3.5 million to Rs 10 million (1 crore).
Under the new affordable housing scheme, the markup rate has been fixed at just 5% for all categories.
This reduced rate will also apply to those who had previously borrowed at 8%.
The government will provide a total subsidy of Rs 322 billion in the first year, including Rs 282 billion as markup subsidy and Rs 40 billion for risk-sharing.
Key Features of the Scheme:
- House size increased from 5 marla to 10 marla (maximum covered area: 2,720 sq ft).
- Apartment/flat size increased to 1,500 sq ft.
- Loan tenure extended up to 20 years.
- Banks will finance up to 90% of the cost; applicants will contribute only 10%.
- No existing residential property should be in the applicant’s name.
Construction Targets:
- By June 2026: 50,000 houses
- By June 2027: 1 lakh houses
- By June 2028: 1.5 lakh houses
- By June 2029: 2 lakh houses
Total target: 500,000 low-cost houses in four years.
The scheme aims to make home ownership easier for low and middle-income Pakistanis by offering long-term loans at a heavily subsidized fixed rate of 5%.
