Discover all your possibilities with our home loan calculator to find the ideal loan package for securing your dream home.
At some point in life, everyone dreams of owning their own home. However, achieving this goal can be challenging due to the dedication, planning, and financial resources required. That said, don’t let this discourage you from pursuing your dream. For first-time buyers, the process of purchasing a house or property may seem daunting. Regardless of where you are in the world, there are legal considerations to keep in mind when buying real estate. To simplify the process for potential buyers, Zameen offers the Home Loan Calculator. Additionally, there are a variety of home financing options available, with most major banks providing solutions to meet this need. Use this tool to compare the best financing options for your home. If you’re concerned about securing a good home loan in Pakistan, rest assured that you can find a bank plan that fits your financing and payment preferences. It’s important to note, however, that your eligibility for various financing options depends on factors such as your salary and nationality. Each bank also has its own criteria for approving home loan applications. To identify the best bank for your needs, carefully assess your options using Zameen’s Home Loan Calculator. Keep in mind that the loan amount and repayment terms may vary by bank. Your debt-to-equity ratio is another key factor, so ensure you present a solid case when applying for your home loan.
Home loans are typically calculated using compound interest, where the interest is applied not only to the principal amount but also to the accumulated interest from previous periods. The formula for compound interest is:
Compound Interest = P [(1 + i)^n – P]
Where:
P = Principal Amount
i = Interest Rate
n = Number of compounding years
Example: Let’s assume a principal amount of PKR 10,000, with an annual interest rate of 5% over a 5-year period. Applying the formula:
Compound Interest = 10,000 [(1 + 0.05)^5 – 10,000]
This results in PKR 2,762 as compound interest over the 5-year period, which will be added to the original principal amount.
While the conditions may vary from bank to bank, here are some common requirements:
The applicant must be a Pakistani citizen.
The applicant must be at least 25 years old.
The applicant’s monthly income should be a minimum of PKR 30,000.
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