Overseas Pakistanis Can Now Buy Property in Pakistan
For the first time in Pakistan’s history, the State Bank of Pakistan has introduced Roshan Apna Ghar, a unique initiative designed specifically for Non-Resident Pakistanis (NRPs) and Pakistani Origin Card (POC) holders. This scheme allows them to digitally and remotely purchase property, construct, or renovate a house in Pakistan using either their own funds or bank financing.
Financing options are available in both conventional and Shariah-compliant forms, with highly competitive rates and flexible repayment terms ranging from three to twenty-five years. The fully digital process and streamlined procedures make it easy and efficient for Overseas Pakistanis to secure housing finance or invest in Pakistan’s real estate market.
NRPs who wish to invest or obtain financing for properties in pre-approved projects will benefit from even quicker processing of their investment or loan applications. Additionally, investments made in Pakistan through Roshan Digital Accounts (RDAs) are fully repatriable and subject to final taxation, ensuring a transparent and hassle-free experience.
Buy A Property Anywhere in Pakistan
NRPs can purchase property directly from their Roshan Digital Account using their own funds by visiting the Roshan Apna Ghar section on the websites of participating RDA banks. To do so, NRPs simply need to select the desired property, submit copies of the title documents, and appoint a representative in Pakistan to handle the sale, purchase, and transfer formalities, ensuring the property is registered in the investor’s name.
Once the bank has conducted a valuation of the property and completed the necessary background checks on the seller, the payment will be released to the seller or the designated beneficiary.
Buy A Property With Bank Finance
NRPs can also secure financing from banks in Pakistan at competitive rates, available in both conventional and Shariah-compliant versions. Financing under Roshan Apna Ghar can be obtained for self-selected properties or from a list of approved projects featured on the banks’ websites.
Applicants have the flexibility to either choose the property before applying for the loan or after the bank has approved the financing limit, based on the applicant’s cash flow and repayment capacity.
Key Features
- Conventional/Sharia Financing Modes
- Flexible Tenors of 3 to 25 years
- Free Property Insurance
- Attractive financing Rates
- Fixed and Variable rate options
- Co-Borrower(s)
- The option to add non-resident Pakistani(s) as Co-borrower(s)
Type Of Financing available
Standard Financing
- Lien Based Financing: NRPs can obtain housing finance by pledging their RDA deposit balances or Naya Pakistan Certificates as security. Banks may provide financing of up to 99% of the property value for the purchase or construction of a house, whereas for home renovations, the financing limit is capped at 40% of the property value. No mortgage on the property, whether equitable or registered, is required for financing secured by a lien. The borrower can digitally sign all financing documents, eliminating the need for physical presence, even for the execution of the sale or transfer deed. However, the borrower must appoint a representative in Pakistan to complete the sale or purchase formalities and ensure the property is registered in the borrower’s name.
- Lien Based Financing: This is a standard housing finance facility offered against the mortgage of the property to be purchased. Banks provide funding of up to 85% of the property value for the purchase or construction of a house, and up to 30% of the property value for renovations. Although the borrower will digitally sign the financing documents, their physical presence or a Power of Attorney in favour of a representative in Pakistan is required to obtain the property’s title documents from the Registrar and to establish the bank’s charge on the property. The banks will supply a soft copy of the Special Power of Attorney (SPA), which the borrower must download, print, sign, have attested by the Pakistan Mission in their country of residence, and then send to the appointed attorney. Pakistan Missions and the Foreign Office in Pakistan have made special arrangements to prioritise the attestation of SPAs for RDA holders.
- Government Markup Scheme (GMSS): The house financing facility under GMSS is also available to RDA holders through the Roshan Apna Ghar product, in accordance with the predefined criteria for the respective tiers. In this case, the financing rates applicable to the Government Mark-up Subsidy Scheme will apply.
No Physical Presence Required:
No physical attendance is required for documentation when purchasing a house through personal investment or bank financing, except in the case of non-lien-based financing. In such instances, the customer has the option to execute the mortgage deed in favour of the bank either through a special power of attorney or by being present in person.
| Single NRP owner: No physical attendance is required for the execution of the transfer or sale deed (carried out as an ex-parte transaction). No mortgage is necessary. | Single NRP owner: The customer may either be physically present or issue a Power of Attorney for the execution of the transfer or sale deed and the creation of a mortgage in favour of the bank. | Single NRP owner: No physical presence is required for the execution of the transfer or sale deed, as it is conducted as an ex-parte transaction. |
| Joint NRP’s ownership with Resident Pakistan No physical presence is required for the execution of the transfer or sale deed, as it is conducted as an ex-parte transaction. Additionally, no mortgage is necessary. |
Joint NRP’s ownership with Resident Pakistan No physical presence is required, as the co-owner will complete the process for executing the transfer or sale deed and creating the mortgage. |
Joint NRP’s ownership with Resident Pakistan No physical presence is required for the execution of the transfer or sale deed, as it is conducted as an ex-parte transaction. |
Free Property Insurance:
Property insurance covering the financed amount is provided free of charge. Additionally, certain banks offer free credit risk coverage for the outstanding financing amount.
Pre Approved Projects:
A list of pre-approved projects or builders is available on the websites of RDA banks, providing NRPs with a convenient option to invest in real estate in Pakistan or to obtain housing or mortgage finance. If investors or borrowers select a property from the pre-approved projects, the loan approval process will be significantly faster.
Off plan financing options for selected Pre Approved Projects:
Off-plan financing is available for under-construction projects, where builders or developers, after obtaining the necessary regulatory approvals, offer houses, apartments, and other properties for sale on instalment plans. Borrowers may seek financing from banks to partially fund the down payment or the periodic instalments due to the builder or developer. This type of financing is commonly referred to as off-plan financing.
Some RDA participating banks have made provisions for off-plan financing on selected pre-approved projects, catering to the financing needs of NRPs interested in acquiring under-construction or development properties. This type of financing typically requires a tripartite agreement between the bank, the builder, and the borrower, clearly outlining the terms and conditions of the financing, the roles and responsibilities of each party, the estimated completion timeline, and any penalties applicable in case of delays. It is worth noting that off-plan financing arrangements may vary from bank to bank and builder to builder.
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Source / reference: State Bank of Pakistan