The federal government has taken a significant step to ease the burden on aspiring homeowners by revising key terms of the Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance.
Officials announced the changes on Friday after the Economic Coordination Committee approved them and the federal cabinet gave its final nod. The Ministry of Housing and Works issued a detailed notification outlining the updated framework, which aims to bring more families into their own homes without crippling interest costs.
Easier Access and Lower Costs for Borrowers
Additionally, the government now fixes the end-user markup rate at 5 percent for all borrowers across both tiers—previously, Tier-2 applicants faced higher charges.
Moreover, the maximum loan amount rises to Rs10 million, and the repayment period extends up to 20 years, with the subsidy covering markup for the first decade.
Ambitious Targets and Risk Support for Banks
Furthermore, the programme has set specific targets to finance half a million housing units over a period of four years. The targets will be 50,000 in the current fiscal year and 100,000, 150,000, and 200,000 in the subsequent years.
Additionally, the State Bank of Pakistan will monitor the implementation process in close coordination with the Pakistan Housing Authority Foundation. The authorities will also reduce the markup for existing borrowers who were given loans at 8 percent by revising it to 5 percent for uniformity.
Therefore, the Ministry of Finance and the State Bank have already directed all stakeholders to start the immediate rollout of these measures.
