How to use the Home Loan Calculator
- 1 Enter the property price.
- 2 Enter the down payment percentage.
- 3 Enter the markup rate.
- 4 Enter the tenure in years.
Worked example
A Rs 15 million house with 25% down at 14% for 20 years. Financing is Rs 11.25 million and the monthly installment is about Rs 139,896. Banks would expect a net income of about Rs 279,800 a month, and total markup over 20 years is about Rs 22.3 million.
Features
KIBOR-based
Rate = KIBOR plus spread, as banks charge.
Income check
Income needed at a 50% debt burden ratio.
Total cost
Markup and down payment together.
When to use it
Buying a house
Plan monthly payments before applying.
Choosing a tenure
Compare 10, 15 and 20 years.
Down payment
See how a larger down payment helps.
Islamic financing
Compare diminishing musharakah offers.
Frequently asked questions
How do home loans work in Pakistan?
Banks finance part of the property, usually up to 70% to 85%, and charge markup linked to KIBOR, reset every year.
What is the maximum tenure?
Often up to 20 or 25 years.
What is the debt burden ratio?
Banks usually want total installments to stay within about 40% to 50% of net monthly income.
Are there government schemes?
Subsidised housing finance schemes have been launched from time to time. Check current schemes with banks.
What documents are needed?
CNIC, income proof, bank statements, property documents and tax returns.
What is diminishing musharakah?
An Islamic home finance structure where the bank and customer jointly own the house and the customer buys the bank's share over time.
Can I get a loan for construction?
Yes. Banks offer construction finance released in stages as building progresses.
Is insurance required?
Banks require property insurance and often life insurance for the borrower.
Can I repay early?
Yes, usually with a prepayment charge, which may be waived after some years.
Do banks finance plots?
Some banks finance plots for construction, but many prefer built houses.
Why do installments change every year?
Most home loans are linked to KIBOR and reset yearly, so the installment rises or falls with interest rates.
Can overseas Pakistanis get home loans?
Yes. Several banks offer home finance for overseas Pakistanis through Roshan Digital Account products.
What is the maximum financing?
Banks usually finance up to seventy to eighty-five percent of the property value.
What is the debt burden ratio?
It is the share of your monthly income that goes to loan installments. Many banks keep it under about forty to fifty percent so that borrowers can still meet other expenses.
Does a co-borrower help?
Adding a spouse or family member's income as co-borrower can increase the amount you qualify for.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated