Pakistan 💰 PKR Last updated2026-05-28

Home finance Calculator Pakistan

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Quick answer (Pakistan)

A PKR 15,000,000 home finance at 16.5% over a 20-year term works out to a monthly payment of about Rs 214,335, with total interest of Rs 36,440,423 over the full term.

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Mortgage Calculator

PKR

Home Value

₨

LTV 80% · No PMI ✓

Loan Amount

₨

Interest Rate

Term

Total Monthly

Rs 239,335

PITI

Principal + Interest

Rs 214,335

71% goes to interest

Total Interest

Rs 36,440,423

over 20 years

Monthly Breakdown

Principal & InterestRs 214,335

Property Tax (1.1%/yr)Rs 17,188

Homeowner's Insurance (0.5%/yr)Rs 7,813

Total MonthlyRs 239,335

Principal vs Interest Split

29% principal

71% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Home finances in Pakistan

Typical loan

Rs 15,000,000

in Pakistan

Typical rate

16.5% p.a.

prime borrower, 2026

Typical term

20 years

most common

Market overview

Pakistan's home finance market is small but growing — total mortgage book is under PKR 250 billion (vs ~PKR 30 trillion in India), reflecting historically high rates and weak housing finance infrastructure. Major lenders include HBL, MCB, UBL, Standard Chartered Pakistan, Meezan Bank (Islamic), and the state-backed House Building Finance Company (HBFC). SBP cut its policy rate from 22% in 2024 to 12% by early 2026, dramatically improving affordability.

Why 16.5% is the typical rate

16.5% reflects a typical KIBOR + 3-4% spread for a salaried borrower at 70% LTV in early 2026, after SBP's easing cycle from peak 22%. Islamic Murabaha rates run similar. The high spread is structural — Pakistan banks demand large risk premia in a high-NPL housing market.

Tax & regulatory notes

Mortgage interest is deductible from taxable income for owner-occupied homes up to PKR 2 million per year (Finance Act 2022 provision). Stamp duty varies by province: Punjab 3%, Sindh 3% (with 1% women discount in some districts), KP 2%. CVT (Capital Value Tax) of 2% may apply on transfer. SBP's Mera Pakistan Mera Ghar program (renewed periodically) offers subsidized rates for first-time low-income borrowers.

🧮 Worked example

A PKR 15,000,000 home finance at 16.5% over a 20-year term

Loan amount

Rs 15,000,000

Annual interest rate

16.5%

Term

20 years (240 months)

Monthly payment

Rs 214,335

Total interest paid

Rs 36,440,423

Total paid (principal + interest)

Rs 51,440,423

❓ FAQ (Pakistan)

Common questions in Pakistan.

Why are Pakistani mortgage rates so high?

Three reasons: (1) SBP's policy rate has been structurally high (15-22% peak in 2023-2024) to fight inflation and defend the rupee, (2) banks demand 3-5% spreads over KIBOR for housing finance due to historical NPL stress in the segment, (3) the long-term funding base for mortgages is shallow — banks fund 20-year mortgages with short-term deposits, requiring premium. As SBP cuts rates and housing-bond market deepens, mortgage rates should compress toward KIBOR + 2%.

Mera Pakistan Mera Ghar (MPMG) scheme — am I eligible?

The MPMG scheme provides subsidized mortgage rates (5-7% effective) for first-time buyers earning under specific thresholds, financed jointly by SBP and commercial banks. Original program (2020-2023) was wound down, but Tier-3 of MPMG continues for small-home purchases (up to PKR 6.5M for tier-3). Eligibility: Pakistani national, first-time buyer, owner-occupied, income within bracket. Apply through HBL, UBL, MCB, or HBFC.

Can overseas Pakistanis (NRPs) get a mortgage in Pakistan?

Yes — most major Pakistani banks (HBL, UBL, MCB, Bank AL Habib) offer NRP home loans. Documentation requires income proof from your country of residence, NICOP/POC, and typically 50-60% LTV (vs 70-80% for residents). The Roshan Apna Ghar program under SBP's Roshan Digital Account framework offers 7-9% USD-denominated home financing for NRPs buying property in Pakistan — significantly cheaper than PKR-denominated mortgages.

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