For the first time in the history of Pakistan, State Bank of Pakistan has launched Roshan Apna Ghar, an exclusive product for Non-Resident Pakistanis (NRPs) and Pakistani Origin Card (POC) holders to digitally and remotely buy a property, build or renovate a house in Pakistan through their own investment or bank financing.
The financing is available in both conventional and Shariah-compliant variants at very attractive rates for a period of three to twenty five years. The end-to-end digital process and simplified mechanism makes it a convenient and fast process for Overseas Pakistanis to obtain housing finance or invest in Pakistan’s real estate sector.
NRPs interested in investing or obtaining financing for properties in pre-approved projects, will have even faster processing of their investment or housing finance request. Investments made in Pakistan through RDAs are fully repatriable and subject to full and final taxation.
NRPs can directly purchase a property from their Roshan Digital Account using their own funds by visiting Roshan Apna Ghar page of RDA participating banks. The NRPs are simply required to select the property, deposit the copies of title documents and nominate a person in Pakistan to complete the sale or purchase and transfer formalities and get the property transferred in the name of the investor. The bank after making valuation of the property and necessary screening of the seller will release payment to the seller or beneficiary.
NRPs can also obtain financing from banks in Pakistan at attractive financing rates in conventional or Shariah-Compliant versions. The financing under Roshan Apna Ghar can be availed against self-selected properties as well as from list of projects available at banks’ websites. The applicant can select the property before applying for the loan or after the approval of financing limit by the bank based on applicant’s cash flows and repayment capacity.
Conventional/ Sharia Financing Modes
Flexible Tenors of 3 to 25 years
Free Property Insurance
Very attractive financing rates fixed and variable rate options
Co-Borrower(s) The option to add non-resident Pakistani (s) as co-borrower(s)
| Rate | Lien based Product | Non-Lien based Product |
|---|---|---|
| Variable | 1 Year KIBOR | KIBOR + 1.5% |
| Fixed* | PKRV 5 Year PIB | PKRV 5 Year PIB+ 1.5% |
* The borrower will have the option of choosing either variable and fixed rate on completion of the 5 years fixed rate term. Click for KIBOR and PIB PKRV rates.
Insurance of the property, up to the extent of financing amount, is free. Moreover, free credit risk coverage up to the outstanding amount of financing is offered by select banks.
A list of pre-approved projects or builders is available at RDA banks’ website for convenience of NRPs to invest in real estate in Pakistan or obtain housing or mortgage finance. If investors or borrowers choose a property from the pre-approved projects, the loan approval process will be much faster.
Off-plan financing is extended for under construction projects. The builders or developers after the requisite regulatory approvals offer houses, apartments etc. for sale on installment plans. The borrowers seek financing from banks to partly finance the down payment or periodic installments to be paid to the builder or developer. This financing is generally called off-plan financing.
Some of the RDA participating banks have made arrangements for off-plan financing of selected pre-approved projects. This would cater to the financing needs of NRPs interested in acquiring an under construction or development property. This financing among others also require a tripartite agreement between the bank, the builder and the borrower to explicitly define the terms and conditions of the financing, the roles and responsibilities of the builder, bank and the borrower, the estimated completion time, the penalties etc. in case of delays etc. The off-plan financing arrangements may differ from bank to bank and builder to builder.
No physical presence is required for documentation to buy a house through own investment or bank financing except in case of non-lien based financing where the customer has an option to execute the mortgage deed in favor of bank either though a special power of attorney or being present himself/herself.
| Lien based loan | Non-lien based loan | Self financing |
|---|---|---|
| Single NRP owner No physical presence required for execution of transfer/sale deed (executed as ex-parte transaction). No mortgage is required. | Single NRP owner Customer may be physical present or issue a Power of Attorney for execution of transfer/sale deed and for creation of mortgage in favor of bank. | Single NRP owner No physical presence required for execution of transfer/sale deed (executed as ex-parte transaction). |
| Joint NRP’s ownership with Resident Pakistan No physical presence required for execution of transfer/sale deed (executed as ex-parte transaction). No mortgage is required. | Joint NRP’s ownership with Resident Pakistan No physical presence required; the co-owner will complete the process for execution of transfer/sale deed and creation of mortgage. | Joint NRP’s ownership with Resident Pakistan No physical presence required for execution of transfer/sale deed (executed as ex-parte transaction) |
Applying for buying a house through own investment or obtaining bank financing digitally is easy. You can find the step by step digital customer journey in the following
| Description | Download |
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| Lien Based Financing |
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| Non-Lien Based Financing |
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| Self-Financing |
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| Off-Plan Financing |
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If you have further query or feedback on Roshan Apna Ghar, please contact relevant banks’ support desks or write to us at: [email protected]
| Description | Download |
|---|---|
| Download Brochure- ENG |
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| Download Brochure- URDU |
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