Home loans in Pakistan: what the State Bank's 2026 housing finance rules say
Up to 90% financing, up to 30 years and a limit of 65% of your income: the State Bank's housing finance rules, explained in plain words.
In this article
If you are thinking of buying a home with a bank loan, the State Bank of Pakistan's Prudential Regulations for Housing Finance set the outer limits of what banks and development finance institutions (DFIs) can offer. Here is what the version updated on 18 August 2026 says.
These are the most the rules allow, not a promise of what you will get. Each bank still decides whether to lend to you, and on what terms.
What a home loan can be used for
The rules list these purposes:
- Buying a house or apartment
- Building a house on a plot you already own
- Buying a plot and building a house on it
- Extending or expanding an existing house
- Renovating a housing unit
- Installing renewable energy, such as solar, in a housing unit
Buying a plot on its own, with no plan to build, is not on the list.
How long you can borrow for
Up to 30 years. For renewable energy financing, the limit is 10 years.
How much of the price can be financed
The maximum loan-to-value ratio is 90:10. On a property valued at Rs10 million, that means a loan of up to Rs9 million, with at least Rs1 million coming from you.
How much of your income can go on repayments
Your total monthly payments, counting this loan and any other consumer financing you have, cannot be more than 65% of your net disposable income. With a net disposable income of Rs300,000 a month, the limit would be Rs195,000 a month.
For people with informal incomes, banks are to use income estimation models circulated by the Pakistan Banks' Association.
Documents and security
The financed property must be mortgaged to the bank or DFI, by equitable or registered mortgage, and the bank must give you a signed acknowledgement listing the documents it receives.
For financing up to Rs5 million, a bank may instead mark a lien in the records of the relevant land record authority. In those cases it may lend against a Green Property Certificate from the Punjab Land Records Authority, where applicable, or an equivalent certificate from the competent authority in another province.
Business Recorder reported in October 2026 that the State Bank had amended this regulation so that banks obtain only the title and ownership documents the State Bank has listed. Ask your bank which documents it needs from you.
Valuation
Financing above Rs10 million requires an assessment by at least one valuator on the Pakistan Banks' Association's approved panel. Up to Rs10 million, a bank may use its own resources.
What your bank must tell you
Before the transaction begins, the bank must disclose all fees and costs, including prepayment penalties and the annualized percentage rate. The rules say there shall be no hidden charges. Financing documents must set out all terms in both Urdu and English, and you are entitled to a copy of the signed agreement and a yearly statement of account.
The housing unit must also be insured, through insurance or takaful, for the amount still owed.
Where the government's scheme stands
Separately, Business Recorder reported on 3 November 2026 that a meeting chaired by the Prime Minister was told that, as of 23 October, Rs511 billion had been approved against 86,899 applications under the ApnaGhar housing scheme, with Rs91 billion disbursed to 15,584 applicants. The scheme's own terms can differ from the general limits above, so check them with your bank.
Before you apply
Compare more than one bank, ask for the full cost in writing, and read the rate terms closely. Rules and bank products change, so confirm the current position with your bank. This article is general information, not financial advice.
Sources
Written by
Bloom Property Team
The team behind Bloom Property: NOC-approved listings from verified realtors across Islamabad.