State Bank of Pakistan (SBP) has further relaxed the condition of housing finance for customers, facilitating them to avail bank financing in projects being completed.
Accordingly, purchasers of housing units in under-construction projects may avail housing finance against their housing units in projects where builder/developer has not availed construction financing.
In such cases, the builder/developer will have to create a mortgage charge over the project’s land in favor of the bank/DFI through an agreement. The charge will only be vacated after completion of the project and transfer of housing units to the purchasers. Moreover, the builder/developer will comply with all other provisions of subject guidelines, stated by the SBP circular.
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Any bank/DFI can provide housing finance to a purchaser of a housing unit in such under-construction projects. However, if the purchaser wants to avail financing from a bank/DFI other than the mortgagee bank/DFI, then it will have to obtain NOC from the mortgagee bank/DFI in this regard. Moreover, the financing bank/DFI of such purchasers will also be required to enter into a bilateral arrangement with the mortgagee bank/DFI to secure its risk.
Previously, purchasers of housing units in the project availing mortgage finance shall sign a tripartite agreement with the builder/developer and bank(s)/DFI(s) specifying superior rights of the bank(s)/DFI(s) over the project land and constructions thereon. Further, banks shall also obtain informed consent from the purchasers who do not avail mortgage finance under these guidelines.
With regard to the requirement of informed consent prescribed earlier, it is clarified that the builder/developer will be responsible to arrange written informed consent from the customers who intend to purchase housing units from their own sources without availing mortgage finance. The letters of written consent of such purchasers will be submitted to the bank/DFI in original by the builder/developer.
