by furqanSBP Relaxes Mortgage Rules to Boost Wazir-e-Azam Apna Ghar Program The State Bank of Pakistan (SBP) has announced significant relaxations in prudential regulations for housing finance under the government’s flagship Wazir-e-Azam Apna Ghar Program – “Ghar Ho Tu Apna”. According to a circular issued on April 29, 2026, by the SBP’s SME, Housing and Sustainable Finance Department, these changes aim to speed up loan approvals, simplify procedures, and make home financing more accessible for a larger number of Pakistanis. Key Relaxations Announced
1. Higher Debt Burden Ratio
The SBP has increased the allowable debt burden ratio to 65% of the borrower’s net disposable income. This limit includes both the new housing loan installment and any existing consumer debts. This major adjustment is expected to significantly expand the pool of eligible borrowers.
2. Simplified Property Valuation Process
- For properties valued up to Rs. 5 million, banks and the House Building Finance Company Limited (HBFCL) can now use their own internal valuation mechanisms.
- For properties above Rs. 5 million, at least one valuation must be conducted by a valuer from the Pakistan Banks’ Association (PBA)-approved panel.
3. Faster Loan Approvals
To reduce processing delays, the SBP has directed all lending institutions to complete the credit approval process within 15 working days, provided the applicant submits a complete set of documents.
4. Regulatory Amendments
These facilitations have been enabled through the relaxation of prudential regulations HF-3 and HF-7. Objective of the Move These reforms are part of the government’s broader efforts to revive housing finance activity, increase mortgage penetration, and support affordable home ownership amid growing urban housing demand.
