The Presidents/ Chief Executive Officers
All Banks/DFIs

Dear Sir/ Madam,

Amendments in Prudential Regulations for Housing Finance – Standardization and Simplification of Documentation Requirements (PR HF-7)

Please refer to SH&SFD Circular No. 04 of 2026 dated 18th August 2026 regarding Prudential Regulations on Housing Finance.
2. In order to facilitate the customers availing Housing Finance, the documentation for creation of mortgage as required under PR HF-7 (Title Documents and Security Arrangements) has been amended. The revised PR HF-7 is given below:

“Banks and DFIs shall obtain only title and ownership-related property documents listed at Annexure – B from the customer to secure the loan amount. Upon receipt, the bank/DFI shall give the borrower a signed acknowledgement listing all title and property documents received.
The house, apartment or plot financed shall be mortgaged in favour of the bank or DFI by way of equitable or registered mortgage.
For housing finance up to PKR 5 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 any security or against hypothecation of the installed assets (solar panels, inverters, batteries and related equipment)”.

3. Banks/DFIs are advised to ensure meticulous compliance of the revised Prudential Regulations.

4. All other instructions shall remain the same.