Mera Ghar Mera Ashiana Home-Loan Scheme
The Government of Pakistan has launched the Mera Ghar – Mera Ashiana housing finance scheme aimed at helping first-time homebuyers secure affordable residential units. The initiative targets low- and middle-income citizens who do not currently own a home, offering them an opportunity to build or purchase a small house or apartment through subsidized financing.
Under the scheme, the government has introduced two financing tiers to cater to different affordability levels. Tier 1 provides loans up to PKR 2 million at a fixed markup rate of 5%, while Tier 2 offers financing above PKR 2 million and up to PKR 3.5 million at a fixed markup rate of 8%. These subsidized rates are intended to reduce the financial burden on households and make homeownership more accessible.
Borrowers can choose a repayment tenure of up to 20 years, allowing them to manage monthly installments more comfortably. The government will provide a markup subsidy for the first ten years of the financing period. To further support applicants, there are no processing charges, and borrowers are allowed to make early repayments without any penalty.
The scheme follows a 90:10 loan-to-value ratio, with banks providing 90% of the financing and the applicant contributing a 10% down payment. A wide range of financial institutions — including commercial banks, Islamic banks, microfinance banks, and the House Building Finance Company — have been included to ensure nationwide access.
The Mera Ghar – Mera Ashiana initiative represents a major step toward improving housing availability, supporting the construction sector, and promoting financial inclusion across Pakistan. With simplified eligibility and attractive financing terms, the government aims to enable more citizens to transition from renting to owning their homes.
Shahnawaz Yaqub Bhatti
Investment Consultant and CEO at Imlaak
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