The State Bank of Pakistan (SBP) has directed commercial banks and the House Building Finance Company Limited (HBFCL) to implement an accelerated approval process for applications submitted under the government’s housing finance program.

As per a circular issued by the central bank, lenders are required to finalize credit decisions within 15 working days after receiving a complete application under the scheme.

To reduce processing delays, the SBP has eased property valuation requirements. Banks and HBFCL may now rely on their internal valuation systems for properties with a market value of up to Rs5 million.

However, properties exceeding this value must undergo evaluation by at least one assessor listed on the Pakistan Banks’ Association (PBA) approved panel.

The central bank has also updated eligibility and financing rules. Under the revised framework, a borrower’s total monthly repayment burden—including housing finance and other consumer loans—must remain within 65 percent of net disposable income.

The housing initiative has also been rebranded as “Wazir-e-Azam Apna Ghar Program – Ghar Ho Tu Apna,” replacing the previous Mera Ghar–Mera Ashiana scheme.

Through the program, eligible individuals can access housing finance of up to Rs10 million at a subsidized fixed markup rate of 5 percent to purchase a home or build a house on land already owned.