Consumer Housing Finance

BAHL Housing Finance product caters to the financing needs of BAHL customers/relationships and is offered to buy, improve/renovate, construct residential properties or transfer their existing housing finance to BAHL; maintaining satisfactory relationship with the Bank.

The product is offered in four variants:


  • Home Buyer
  • Home Construction
  • Home Improvement
  • Home Balance Transfer
Home Buyer
  • The product is offered to individuals who intend to buy already built residential property (house or apartment) for personal use only.
  • Minimum Amount PKR 0.3 Million. Maximum Amount PKR 50 Million or based on the age of property ranging from 75% to 85% of appraised value of built up house /apartment /land whichever is lower. Financing will be based upon net income.
  • Financing under any of the above conditions will be based upon verified net income of the applicant to ascertain repayment capacity.
  • Only Spouse can be made as co-borrower for income clubbing or property ownership. Income of spouse can be clubbed with primary borrower after obtaining his/her written consent for income clubbing and making him/her co-borrower in the case.
  • Minimum income requirement for co-borrower will be Rs.30,000/-, however other credit parameters of the co-borrower will be as of the basic borrower.
  • Tenure ranges from 1- 25 years.
  • Disbursement will be made as one Bullet Payment in the name of the seller.
  • Repayment in equal monthly installments based on the tenure of financing.
  • Property valuation(s) will be made from an approved PBA valuator(s) on Bank’s panel. If the Housing Finance is above Rs.10 million then it should be subject to assessment of the property by at least two valuators.
  • Legal requirements to be completed by applicant as deemed necessary by the Bank’s Legal Counsel.
  • Customer will have the option of making balloon payments. Balloon payment fees shall be levied as per the applicable Schedule of Charges of the Bank.
Home Construction
  • This product is extended to customers who already own land and need funds to meet the construction cost. It also caters customers who have already begun construction and have completed it up to a certain level.
  • Only Spouse can be made as Co-borrower for income clubbing or property ownership. Income of spouse can be clubbed with primary borrower after obtaining his/her written consent for income clubbing and making him/her co-borrower in the case.
  • Minimum income requirement for co-borrower will be Rs.30,000/-, however other credit parameters of the co-borrower will be as of the basic borrower.
  • Minimum Amount PKR 0.3 Million. Maximum Amount PKR 35 Million or 100 % of Bill of Quantity (BOQ) or 70% of the construction cost and appraised land value whichever is lower.
  • Financing under any of the above conditions will be based upon net income of the applicant to ascertain repayment capacity.
  • Tenure ranges from 1- 25 years. However, an Undertaking is to be provided by the applicant to complete the construction in 2 years from 1st disbursement in all respect.
  • Disbursement will be made in tranche percentage wise according to Construction phase & it’s cost as per given Bill of Quantity ( BOQ).
  • Usual Disbursement stages are as follows:-
    1. Plinth & Foundation 30%
    2. Structure 30%
    3. Finishing 40%
  • Land/Property valuation(s) will be made from an approved PBA valuator(s) on Bank’s panel. If the Housing Finance is above Rs.10 million then it should be subject to assessment of the property by at least two valuators.
  • Legal requirements to be completed by applicant as deemed necessary by the Bank’s Legal Counsel.
  • Repayment in equal monthly installments based on the tenure of financing (2 year grace period for construction is also included, where only mark up is to be serviced).
  • Customer will have the option of making balloon payments. Balloon payment fees shall be levied as per the applicable Schedule of Charges of the Bank.
Home Renovation
  • Home improvement is offered to customers who already own a constructed house and require funds for its improvement/renovation. Only owner occupied and vacant residential properties shall be entertained under this segment.
  • Financing from Rs.300,000 up-to Rs.15 million or up-to 50% of appraised value whichever is lower.
  • Tenure ranges from 1- 25 years.
  • Disbursement made as 1 Bullet Payment in customer’s account or pay order in favor of the basic or co-borrower.
  • Bill of Quantity (BOQ) also required.
  • Property valuation(s) will be made from an approved PBA valuator(s) on Bank’s panel. If the Housing Finance is above Rs.10 million then it should be subject to assessment of the property by at least two valuators.
  • Legal requirements to be completed by applicant as deemed necessary by the Bank’s Legal Counsel.
  • Repayment in equal monthly installments based on the tenure of financing.
  • An Undertaking is to be provided by the applicant for utilization of funds for home improvement only.
  • Customer will have the option of making balloon payments. Balloon payment fees shall be levied as per the applicable Schedule of Charges of the Bank.
Home Balance Transfer
  • Home Balance Transfer is offered to borrowers who are already availing housing finance from other institutions/banks with good repayment history.
  • Only the outstanding amount shall be paid to the releasing bank/institution or maximum amount PKR 50 Million whichever is lower. No enhancement in financing amount will be offered to the applicant.
  • Property ownership must be in the name of primary borrower or co-borrower (spouse). Customer to provide a letter, authorizing our bank official to collect and retrieve all title documents from the releasing bank/institution.
  • Property valuation(s) will be made from an approved PBA valuator(s) on Bank’s panel. If the Housing Finance is above Rs.10 million then it should be subject to assessment of the property by at least two valuators.
  • Legal requirements to be completed by applicant as deemed necessary by the Bank’s Legal Counsel.
  • Customer will have the option of making balloon payments. Balloon payment fees shall be levied as per the applicable Schedule of Charges of the Bank.
Eligibility Criteria

All customers must fulfill the following requirements to be eligible for BAHL housing finance product:

  • Must be a Pakistani national.
  • Existing individual customers maintaining satisfactory relationship. Minimum 6 months of active relationship with BAHL.
  • BAHL Corporate/Commercial Relationships.
  • Valid CNIC issued by NADRA (NICOP card holders having businesses/employment in Pakistan may be accepted with conditions applicable).
  • Self Employed professionals (Doctors, Engineers, Chartered Accountants, Architects, etc) having at least 2 years of valid business proof with minimum Rs.100,000/- net verifiable income.
  • Self Employed Businessmen having at least 3 years of valid business proof with minimum Rs.100,000/- net verifiable monthly income.
  • Salaried individual having at least 2 years of permanent service and Possesses minimum net monthly take home salary of Rs 60,000/-.
  • Age must be 25 to 60 years for salaried individual & maximum 65 years for Business / Self Employed Professionals at the time of loan maturity.
  • Installment not to exceed 45% (Debt Burden) of the monthly take-home income.
  • The aggregate Debt Burden should not be more than 50%.
Pricing
  • Variable Rate Option i.e. 1 Year Kibor + 3% With Salary Transfer (for Salaried Person).
  • 1 Year Kibor + 3.5% (for without salary transfer & Businessmen/SEP).
  • Rate revision on each category will be on loan anniversary.
DOCUMENT CHECK LIST (SEP / BUSINESSMEN / PVT LTD)
  • Financing Application Form completely filled and signed by customer.
  • 3 recent passport size photographs of primary & co-applicant (if any).
  • Valid CNIC of primary/co-applicant (Old NICs will not be acceptable).
  • Form CF-1 as per SBP format.
  • Proof of being in business for 3 years can be established through any of the following documents.
  • Bank certificate reflecting business entity status, customer’s status & years in business.
  • Last 3 years’ tax documents.
  • Partnership deed (registered & notarized). In case of unregistered partnership deed other supporting evidence of business proof shall be required.
  • Memorandum & Articles of Association along with latest Form `29’ or Form `A’.
  • Copy of ownership title documents of the office.
  • Company remuneration certificate (in case of salaried director).
  • Verifiable rent deed or ownership deed (original seen) will be acceptable to evidence that the business/profession has been in existence.
  • Copy of professional degree / certificate.
  • Membership certificate from relevant professional body (for SEP only).
  • Certificate of incorporation in case of private limited company.
  • Any other verifiable document as acceptable as business proof.
  • Besides the above mentioned ownership documents one year bank statement of the company or personal will be required to calculate income.
  • For private limited, applicant is to provide one year bank statement of his personal account.
DOCUMENT CHECK LIST (SALARIED INDIVIDUAL)
  • Financing Application Form completely filled and signed.
  • 3 recent passport size photographs of primary & co-applicant.
  • Valid CNIC of primary/co-applicant (Old NICs will not be acceptable).
  • Form CF-1 as per SBP format.
  • Latest 3 months salary slips
  • Latest Salary/employment certificate
  • Last one year bank statement; where salary is being credited
Security
  • Equitable Mortgage in favor of BAHL along with Token or Full Registered Mortgage; as advised by our Legal Counsel
  • Life Coverage Insurance & Property Insurance
Charges

(Subject to change as per applicable SOCs of the bank)

1.Processing Fee:
2.Balloon Payment:
3.Delayed Payment:

4.Returned cheques:
5.Property Valuation:
6.Lawyers fee:
7.Income estimation:
8.Life & Property Insurances:
Rs. 4,000/-
3% as per SoC
Rs. Rs. 500/- per late payment of installment
Rs. 500 per case
At Actual
At Actual
At Actual
At Actual
Distribution:

All Branches of BAHL are authorized for booking Consumer Home Loan.


FAQ’s

What is the Mark-up rate for Bank AL Habib Home Mortgages?


Product Variant Salaried Self Employed Professionals/Business
Home Purchase All 4 products will be based on Variable Rate Option i.e. 1 Year Kibor (subject to review on each anniversary of loan) plus bank’s spread (fixed during the entire tenure of the loan)
Home Construction
Home Renovation
Home Balance Transfer

What will be the loan tenure?

For all 4 variants 1 -to 25 years.

Who will assess the value of property?  

Bank AL Habib has exclusive arrangements with PBA approved valuators for this purpose

All expense incurred on property valuation / BOQ assessment will be made borne by the customer.

What are the different disbursement stages for payments in the home construction loan?

The stages are as follows:

Plinth Stage. 30%
Structure completion. 30%
Finishing Stage 40%

I am a Businessman/Self Employed Professional, how will you assess my income?

From last 1 year bank statement or income estimation which ever is applicable or any other valid documentary evidence as deemed necessary by the Bank.




What is the process of income estimation?

A representative from our approved evaluation firm will visit your place of business/work by taking a prior appointment with you and appraise your income level, by going through the documents and data provided by you.




What will be the Repayment method for the loan?


An account for you will be opened at the branch, closest and the most convenient to you. You will be required to deposit funds sufficient to afford a monthly installment in that account. A direct debit instruction from you in favor of Bank AL Habib would then allow us to debit the installment amount from your account on monthly basis.




What if I already have an account with Bank AL Habib?


If you already have an account with BAHL, you can give direct debit standing instructions in favor of BAHL which would allow us to debit the installment amount from your account on monthly basis.




What is the penalty on early settlement of the loan?


The penalty on early settlement of loan is 3% on principal loan outstanding. This is subject to change as per bank’s applicable Schedule of Charges




How to Apply
  1. We provide you with all the information you need about Bank AL Habib Housing Finance. This can be through a face-to-face meeting with our bank representative, or over the telephone, or through the mail / email.
  2. You give us some basic information about your income and the financing you need so that we can give you a tentative qualifying loan amount for your ready reference.
  3. Once you have decided on the amount you want, fill the Application Form available in all the branches with the required documents for a formal process of the loan application and initial approval or rejection.
  4. In the next stage, property valuation, legal opinion on property documents through our approved valuators and lawyers will be carried out along with life & property insurance coverage as applicable in order to send you our “Conditional Facility Advice Letter”.
  5. You accept the above “Conditional Facility Advice Letter”.
  6. For next stage, the bank shall get in touch with you to have complete Financing & Charge documentation for it's duly execution and signing (charges at actual to be paid by customer).
  7. Our legal advisor and bank’s representative will accompany you to the Registrar’s office on the appointed date with our cheque for final transaction. (charges at actual to be paid by customer).
  8. However, the bank reserves the right to reject the application at any stage with out assigning any reason.
Contact Us

For further details, please contact your nearest Bank AL Habib Limited Branch, or Consumer Housing Finance, Consumer Banking Division, 111-111-176 Ext 201, Direct: 0213-2463079.

Note: All loan processing and approvals will be done as per Bank’s Credit / Product Policy.