How to Apply for Housing Mark Up Subsidy Scheme
By M Ali
If you are planning to get home loan, this is very tough option due to higher marks up banks are charging. Keeping in view this, the government has launched the Housing Mark Up Subsidy Scheme for 50,000 housing units with a total budget of Rs72 billion. It is designed to support first-time homebuyers in Pakistan by offering low, fixed interest housing loans for affordable homes and flats.
Key Highlights
- Fixed Interest Rates for First 10 Years:
- 5% for loans up to Rs2 million
- 8% for loans from Rs2 million to Rs3.5 million
- Loan Tenure: Up to 20 years
- Unit Size Limit:
- Houses up to 5 Marla
- Flats up to 1,360 sq. ft.
- Loan-to-Value Ratio: 90:10 (only 10% down payment required)
- No processing fees or prepayment penalties
- Total subsidy cost: Rs71.98 billion over 20 years
🧾 Who Is Eligible?
- Must be a first-time homebuyer
- Must not own any property
- Must have a valid CNIC
- Must meet bank-defined credit criteria
- Only one unit per person/family
🏦 Who Will Manage the Scheme?
- The scheme is backed and designed by:
- Ministry of Finance
- State Bank of Pakistan (SBP)
- Ministry of Planning
- Pakistan Housing Authority Foundation (PHAF)
SBP will ensure compliance, while PHAF will oversee implementation and outreach.
📝 How to Apply?
While formal application procedures will be announced soon, here’s how it is expected to work based on past subsidy programs:
Step-by-Step Process (Tentative):
- Choose a participating bank
Likely candidates include:- National Bank of Pakistan (NBP)
- Bank of Punjab (BOP)
- Meezan Bank
- HBL, UBL, MCB, etc.
- Prepare documents:
- CNIC
- Income proof/salary slips
- Property estimate or booking details
- No-objection certificate (if applicable)
- Proof of not owning previous property
- Visit bank branch
Ask for government housing subsidy loan form under the “first-time homeowner” scheme. - Loan approval and verification
Bank will evaluate creditworthiness, property eligibility, and forward case for approval. - Disbursement
After approval, the loan will be disbursed, and the government will pay the interest subsidy directly to the bank.
📢 Public Outreach
The Ministry of Information has proposed potential scheme names for public awareness campaigns:
- Apna Ghar — Roshan Mustaqbil
- Mera Khawab — Mera Aashiyana
- Mera Ghar — Meri Jannat
Official branding and portals are expected soon through PHAF and bank websites.
📌 What You Should Do Now
- Stay alert for official launch on PHAF or SBP website
- Contact your bank to confirm their participation
- Gather documents in advance
- Follow updates from Pakistan Housing Foundation and SBP
