SBP eases mortgage rules under Wazir-e-Azam’s Apna Ghar Program–Ghar Ho Toh Apna

April 29, 2026 (MLN): The central bank has relaxed key prudential requirements for housing finance under the government’s “Wazir-e-Azam's Apna Ghar Program-Ghar Ho Tu Apna” initiative.

This aims to accelerate mortgage approvals and broaden access to affordable home ownership.

In a circular issued by the SME, Housing and Sustainable Finance Department, the State Bank of Pakistan said it has eased regulatory conditions for banks and the House Building Finance Company Limited (HBFCL) to improve implementation of the Wazir-e-Azam’s Apna Ghar Program.

Under the revised framework, the debt burden ratio has been increased, allowing total monthly repayment obligations, including the new housing loan and existing consumer debt, to reach up to 65% of a borrower’s net disposable income, significantly expanding eligibility for potential applicants.

To streamline property valuation, the SBP has also relaxed assessment requirements.

For properties valued up to Rs5 million, banks and HBFCL may rely on internal valuation mechanisms.

For higher-value properties, at least one valuation must be conducted by an evaluator from the Pakistan Banks’ Association (PBA)-approved panel.

In a bid to address processing delays, the central bank has mandated that lending institutions complete credit approvals within 15 working days of receiving a fully documented application under the scheme.

The regulator noted that prudential regulations HF-3 and HF-7 have been relaxed to the extent required to implement these measures, directing banks and HBFCL to ensure strict compliance with the updated instructions.

The latest measures are part of broader efforts to revive housing finance activity and improve affordability in a market where mortgage penetration remains relatively low despite rising urban demand.

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