The State Bank of Pakistan has issued strict new instructions to banks. Banks and the House Building Finance Company Limited must introduce a faster approval mechanism for housing finance applications. Consequently, SBP orders banks to make housing loans easier for thousands of applicants. The central bank’s circular requires credit approval within 15 working days from the date of complete application submission. To accelerate processing, the SBP has also relaxed property valuation requirements.

Banks can now use their internal assessment mechanisms for properties valued up to Rs. 5 million. For properties above Rs. 5 million, valuation must come from at least one appraiser on the Pakistan Banks’ Association approved panel. Therefore, SBP orders banks to make housing loans easier by removing unnecessary valuation hurdles. The central bank has also revised eligibility and financing conditions. Total monthly loan repayments must not exceed 65 percent of the borrower’s net disposable income. This includes housing finance and all other consumer financing obligations.

The government has renamed the housing initiative as well. The new name is “Wazir-e-Azam Apna Ghar Program – Ghar Ho Tu Apna.” This replaces the earlier title Mera Ghar–Mera Ashiana. Under the scheme, eligible applicants can obtain financing of up to Rs. 10 million. The subsidized flat rate sits at only 5 percent. Borrowers can use this financing for purchasing a housing unit or constructing a house on already owned land. Consequently, SBP orders banks to make housing loans easier and more accessible to middle-income families.

The 15-day approval timeline will reduce long waiting periods. Families can now plan their home purchases with greater certainty. Banks must comply or face regulatory action.