In the last several years, the Government of Pakistan and the State Bank of Pakistan have made several moves to make the process of home financing easier for consumers. For example, some of the borrower qualification criteria has been eased up.
The government has also pushed banks and financial institutions to improve the home financing assets in their portfolio. According to news sources, regulators are looking to increase home financing to at least 5% of the total private sector credit.
Meanwhile, the SECP has started providing licenses for private home financing institutions in Pakistan. Trellis Housing Finance Limited is one such company that has started offering home financing products for consumers.
This is certainly a step in the right direction. More SMEs entering this marketplace means more competition, better product variety, and higher emphasis on customer service standards.
As things stand right now, most borrowers looking to apply for a home loan in Pakistan must go through a rigorous qualification process. The entire financing model from loan initiation to closing can take 3 to 6 months to complete.
Customers receive little help during this and they face strict scrutiny at every stage. Getting a loan to buy your own home, or to purchase a plot for construction is no easy task.
The Home Building Finance Company (HBFC) was established during the 1950’s to address this issue. It was supposed to be the premier, government-backed lending institution in the country. However, the organization has become very bureaucratic over time. Getting approved for a loan through HBFC is quite difficult and the staff isn’t the most helpful.
Private lending banks have entered the marketplace in the last two decades. Although home financing is easier with these banks, they still lack digitization. Their qualification process is not customer friendly. This is understandable as banks often need to comply with strict regulations and they are reluctant to pursue clients. Home financing is also just one of their several products and banks do not focus specifically on making the process convenient for consumers.
With the introduction of dedicated home financing and lending institutions in Pakistan – such as Trellis Housing Finance Company – we can look forward to a new era of easier and customer friendly credit products for consumers. In a short span of time, Trellis has grown its operational network to major cities across Pakistan, including Karachi Lahore and Islamabad.
We have built a robust system of home financing that can be used by people from lower- and middle-income backgrounds to fulfill their dream of owning their own home.
If you are looking for easier financing to purchase or build your own home, then feel free to get in touch with our team or call us at 0309-2228435.
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