SBP simplifies housing finance documentation requirements

October 12, 2026 (MLN): The State Bank of Pakistan (SBP) has amended the Prudential Regulations for Housing Finance to standardize and simplify documentation requirements for customers availing housing finance.

Under the revised PR HF-7, titled “Title Documents and Security Arrangements,” banks and Development Finance Institutions (DFIs) shall obtain only title and ownership-related property documents listed in Annexure B to secure the loan amount.

Upon receiving the documents, banks and DFIs shall provide borrowers with a signed acknowledgement listing all title and property documents received.

The house, apartment or plot financed shall be mortgaged in favor of the bank or DFI through an equitable or registered mortgage.

For housing finance of up to Rs5 million, banks and DFIs may extend financing by marking a lien on the property in the records of the relevant land-record authority.

Renewable-energy finance may be extended without security or against hypothecation of the installed assets, including solar panels, inverters, batteries and related equipment.

Banks and DFIs have been advised to ensure meticulous compliance with the revised Prudential Regulations, while all other instructions shall remain unchanged.

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