| |
| Five segments of housing finance
product are mentioned as under: |
Purpose |
HP: Purchase of Ready
property. |
| |
|
| |
HC: Construction of house on land
owned by borrower/s and should be disbursed in tranches. |
| |
|
| |
HR: Renovation of existing home with documented
end usage and should be disbursed in tranches. |
| |
|
| |
BTF: Payment to the relevant bank plus a portion
paid to the customer for documented end use other than investments
in real estate and capital market. |
| |
|
| |
PC: Purchase of land / plot and construction on
it which should be disbursed in tranches. |
| |
|
|
| Cities offering housing
finance: |
| Karachi, Lahore, Faisalabad, Rawalpindi and
Islamabad cities are offering housing finance. |
| |
| General terms and
Conditions: |
|
Repayment in equal monthly installments
(EMI). |
|
|
|
Title Search of property documents is mandatory. |
|
|
|
Information regarding availed loans from other
banks should be authentic. |
|
|
|
Personal information should be valid. |
|
|
|
Mandatory verification checks of borrowers and
collateral. |
|
|
|
Bureau reports regarding repayment history of all
borrowers wherever applicable should be unambiguous, positive and
satisfactory. |
|
|
|
Property insurance is mandatory. |
|
|
|
Equitable/Token Registered Mortgage/Registered Mortgage
based on legal opinion. |
|
|
|
Noting of mortgage charge in bank’s favor
is mandatory as per bank’s policy. |
|
|
|
Legal Opinion from bank’s approved professional
lawyers. |
|
|
|
Collateral appraisal through bank’s approved
valuation agencies. |
|
|
|
Income estimation through bank’s approved
Chartered Accountants. |
|
|
|
| Extract of relevant
SBP Regulations and banks policy on mortgage Financing: |
|
SBP Regulation:
Total monthly installment should not exceed 50% of net disposable
income. |
|
|
|
MCB Bank policy:
Total monthly installment should not exceed 50% of net disposable
income for financing up to 10M whereas maximum 45% debt burden for
financing above 10M. |
|
|
|
SBP Regulation: The debt equity
ratio should be 85: 15. |
|
|
|
MCB Bank policy: The debt equity
ratio is 70:30. |
|
|
|
SBP Regulation: Banks/DFIs
may extend mortgage loans for housing up to any tenure defined in
the bank’s/DFI’s duly approved credit policy and keeping
in view the maturities profile of their assets & liabilities. |
|
|
|
MCB Bank policy: Maximum loan
tenure is 20 years. |
|
|
| |
SBP Regulation:
The collateral should be properly evaluated by third party or concerned
officials. |
|
|
|
MCB Bank policy: The
collaterals are evaluated by bank’s approved evaluation agencies. |
|
|
|
SBP Regulation: Floating rate should
extend for housing finance . |
|
|
|
MCB Bank policy:
Floating rate are extended for housing finance which is re-priced
annually. The bank spread would however remain constant while the
change in KIBOR shall affect the pricing. |
|
|
| Eligibility Criteria: |
|
Applicant(s) must
be Pakistani National. |
|
|
|
Salaried, Self employed businessmen
(SEB) and Self employed professionals (SEP) are eligible for application. |
|
|
|
Satisfactory verifications. |
|
|
|
Satisfactory bureau checks. |
|
|
|
Satisfactory income estimation,
property valuation and legal opinion. |
|
|
| Eligible Financing Limits: |
| Minimum Loan amount PKR 500,000. |
| Maximum Loan amount: |
|
HP:
20 Million |
|
|
|
HC: 10 Million. |
|
|
|
HR: 5 Million. |
|
|
|
BTF: 20 Million. |
|
|
|
PC: 20 Million. |
|
|
| Pricing Criteria: |
|
Rate
for Salaried class: Offered 1 year Kibor rate of last working
day of the month + 4% spread. |
|
|
|
Rate for SEP/SEB:
Offered 1 year Kibor rate of last working day of the month + 4.5%
spread |
|
|
|
After completion of 12 months cycle, loan will
be repriced; however, the spread will remain the same. |
|
|
|
|
| Required Documents: |
|
Application Form. |
|
|
|
Copy of valid and original
CNIC. |
|
|
| |
Two passport size photographs. |
|
|
|
Declaration of all financing facilities availed
from all banks/DFIs. |
|
|
|
Income Documents. |
|
|
|
Business/Employment proof. |
|
|
|
Copy of property documents. |
|
|
| How to apply: |
| Please contact our call center 111-000-MCB (622). |
| |
Note: The
information provided is as per the current practice and the policy/ process
can be changed without prior intimation. Moreover, this is very limited
information and that the bank reserves the right to decline/ reject any
case that does not fit bank’s detailed policy criteria.
|
| |
