Everything You Need to Know About House Building Finance Company Limited (HBFC)

Owning a property is one of the biggest goals of a person’s life. Whether you are an engineer, a doctor, or even a banker, buying a property can be a massive investment and risky at the same time. One can save for their entire life and yet might not be able to gather enough money to buy a house. A housing loan can help you build your dream house but choosing the right loan can be tricky. HBFC is a pioneer housing finance institution that provides a loan to the low and middle-income group of population.

HBFC Loan

Despite the growing social and economic importance of development that economists give credit to housing finance, it still remains underdeveloped in Pakistan. Housing finance is expensive and still favors the higher income population in Pakistan. HBFC studied the fundamental constraints that hold back the sector’s growth and realized that providing loans to low-middle income groups can exponentially improve the development.

Interested to know more? Where can you apply? Let me help you. You may apply for Home Financing by visiting any branch of HBFC. There are 51 branches of HBFC spread all over Pakistan and you can find out about their location through Branch Locator on their website. For non-resident Pakistani, you can apply through a legally appointed attorney.

How many loans can you avail of from HBFC?

The amount of loan depends on a number of factors including age, property value, and income. Income assessment is carried out by either the Branch Manager or Income Estimation Agency depending on if your job is government or private. Moreover, HBFC has special arrangements with PBA valuators that visit the property you want to invest in and evaluate the market price of the said property.

You can get up to 4,500,000 PKR in Ghar Pakistan Scheme and 8,800,000 PKR loan in Ghar Pakistan Plus Scheme. However, for cash-based income, the loan approved is only 1,000,000 PKR. Furthermore, Ghar Sahulat Scheme also offers up to 25,000,000 to affluent individuals of major cities like Karachi, Lahore, Islamabad, Faisalabad, Peshawar, and Quetta.

Eligibility Criteria for HBFC

There are certain criteria you need to pass to be able to avail of the loan. Under no circumstances you can get a loan unless these conditions and criteria are not met. Firstly, citizenship is a must. Pakistani Citizenship is required to avail of the loan for both residing and non-residing people. The age of the applicant is one of the major factors deciding the loan amount and eligibility itself. A person should age 18-57 years old to avail of the loan while being employed for a minimum year continuously. The income should be up to 100,000 PKR monthly.

In case you are a business person, your business should be established and stable with a minimum of 2 years in a particular industry. A self-employed businessman can apply for the loan if the personages between 18 to 62 years old.

Charges for applying for HBFC

Applying for a loan always requires processing fees that are non-refundable. The processing fees depend upon the amount of financing required. For finance up to 1,000,000 PKR, 2000 PKR is charged as processing fees. While for loans above that, the processing fee is 5,000 PKR.

As mentioned above, the amount of loan that an individual can get depends upon income and property value. There are charges to evaluate and assess these aspects which are also non-refundable. Income Estimation Charges can cost around 2,100K- 5,500 PKR for a salaried individual while for government employees or companies listed on the stock exchange, the charges are exempted. Property Valuation Charges are 2,000 PKR for a flat while 2,500 PKR for a house.

HBFC Loan Calculator

A loan calculator is an outstanding tool provided by House Building Finance Company. If you are planning to apply for a loan, this loan calculator gives you a rough idea of how much loan can you get by all three schemes HBFC has to offer. You have to fill out basic information to get an estimated value of the loan that can be given.

• Name
• Age
• Main purpose of loan
• Property Value
• Amount of Loan Required
• Source of Income
• Monthly Income
• Tenure for payment

Filling out the required information gives a rough estimate of the amount of loan that you can avail yourself of based on your income, property value, and age.

Houses for sale in HBFC

Besides granting loans, House Building Finance Company has also developed a housing society in Lahore where you can buy a property. Lahore has several options when it comes to investing in real estate, however, HBFC Housing Society is one of the ideal places to buy a property for high-quality living standards.

The Housing Society is located near Lahore Ring Road, bounded by DHA 5, Sui Northern Officers Cooperative Housing Scheme, and Sultan Colony and Leel. It is a small residential community divided into three blocks: Block A, Block B, Block C.

Houses for sale in HBFC are newly built and close to all amenities. There are several sizes of houses available in the housing society with an affordable price range. An 18 Marla house for sale in HBFC is estimated to cost around 2.2 Crore. As the land size increases, so does the price. A 20 Marla house can approximately be around 2.4 Crore. It also offers 40 Marla Houses for sale In HBFC with a starting price somewhere around 6.65-6.7 Crore. Lastly, people interested in 1 Kanal house for sale in HBFC can buy them in a range of 2.2-6.6 Crore depending on location and area.

Plots for sale in HBFC

Buying a plot can be a great investment plan. Not only does the property value rises with time steadily, but it also ensures an asset in your name. Plots for sale in HBFC can be an ideal choice to invest in with the housing society offering a great location in Lahore. 

Here are some rough estimates of the price for different sizes of plots. An 18 Marla plot for sale in HBFC is estimated to cost around 1.74 Crore while prices for 20 Marla can range from 1.64 Crore to 2.15 Crore. There are options for 1 Kanal plot too with a starting price of 1.64 Crore.

Commercial Property

Another great option for investment is to buy a commercial property. Whether you want to run your own business or want to rent it to other Business Owners, it can be a smart investment. You can get commercial plots of 1 Kanal at a starting price of around 4.5 Crore.

Remember, according to the trends Block A is the most preferred block to buy a house or even a commercial property.

Final Words

Investing in a property can be a big challenge and the capital required can take a life-long to save. Exactly why we recommend taking a loan according to your needs. Making a house and renting a portion can provide you with a stable income stream and help you pay off the loan.

Investing in a property can be risky and exactly why we recommend hiring a professional realtor who could guide you along the way. It is also advised to search extensively and draw a checklist to aid you in the selection process.

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