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FAQ’s – Alfalah Home FinanceFAQ’s – Alfalah Home Finance

FAQ’s – Alfalah Home Finance

  • BAF offers wide range of products including:
    • Home buyer- you can buy an apartment/ house
    • Home build- construct on already owned plot (self-/spouse)
    • Home Secure
    • Plot purchase and construct on it
    • Balance transfer facility- transfer your loan obligation to us from another lender
    • Alfalah Green Energy – solar panel solution

Under Consumer Finance, the purpose of finance has to be with in defined purposes i.e. home buyer, home build on own plot, plot purchase and construction, Balance transfer facility, Solar Financing Solutions.

Presently we finance properties located in certain localities within Lahore, Karachi, Islamabad, Quetta, Depalpur, Sargodha, Jhang, Sialkot, Kotli, Rawalpindi, Jhelum, Mirpurkhas, Multan, Arifwala, Pakpattan, Abbottabad, Gujrat, Sahiwal, Bahawalpur, Okara, Sukkur, Faisalabad, Rahim Yar Khan, Chichawatni, Gujranwala, Wah Cantt, Sadiqabad, Hyderabad, Sheikhupura, Taxila, Peshawar and Bahawalnagar.

There is no negative list. We prefer to finance on properties located in DHA, properties under Development Authorities (KDA, LDA, RDA, CDA, FDA), properties in approved and registered societies.

Only if they hold valid Pakistani nationality (NICOP/CNIC), in addition to their overseas permanent resident status.

There is no positive or negative locations list in the industry, you just have to choose a residential property in the market and get back to us to apply for a finance. We will sought clear legal option from the bank’s lawyer on property title documents. Further we will seek an internal review to make sure the property you selected is marketable with free access. Consequently, you will be informed if the property is not acceptable to us, you will further be advised about other secured property options. Hence, we are not bound by any sale commitment that you may have made with the seller.

We finance to: Salaried individual, Self-employed professional, Businessperson, Expatriate, other (rental, agriculture).

Your application shall only be processed once you submit all documentation and information to our satisfaction. If your loan gets approval from bank’s internal credit department, we shall start proceeding with all legal formalities related to the property. Next we will wait for your instruction to disburse the facility.

There is no minimum requirement for the property

There no minimum or maximum financing limit

A monthly verifiable minimum net income of Rs. 50,000 for salaried (local) & USD 3K for expatriate salaried. Rs. 100,000 for self- employed, businessperson and others and USD 4K for expatriate non-salaried.

Yes, we allow up to two co-borrowers (blood relatives/spouse, children, parents, siblings), to consolidate their income to enhance your financial eligibility. Further, co-borrowers can be in the capacity of both property ownership and clubbing of income.

Currently we offer variable (floating) mark-up rate calculated on the basis of prevailing 1 year KIBOR + 3% BAF mark-up per annum for local salaried, 1 year KIBOR + 4% BAF mark-up per annum for expatriate salaried, self- employed, businessperson and others. This mark-up is subject to revision each year.

No, Home Finance is only applicable for residential properties.

Please refer to the “Schedule of Charges” for detailed information on application charges.

A late payment penalty will be levied that you will be required to clear off at the end of your financing tenure. For details on late payment charges please refer to “Schedule of Charges”.

We allow up to two partial/balloon payment a year with maximum of 20%  of the outstanding balance. However, no balloon payment shall be allowed during 1st year of disbursement without levy of penalty. For more details refer to “Schedule of Charges.

We allow an early payment facility at a nominal charge. Please refer to the “Schedule of Charges” for more information.

To protect your major long term investment we offer a mandatory Life and Property insurance at very nominal rate and is built into your monthly instalment. (See “schedule of charges” for more information).

BAFL provides full insurance coverage of the financed property in case of apartment and up to construction cost in case of house.

Borrower cannot transfer housing finance to other banks/DFIs before completion of eighteen (18) months with a bank/DFI as a mortgagee. After the restricted period you may transfer to any other lender.

We offer feasible tenure option 3 years to 25 years based on an individual applicant’s age.

KIBOR is subject to revision every year, BAF rates (margin) are non-negotiable and fixed throughout the financing tenure. Hence, your financing tenure shall be revised yearly to reflect changes.

Our financing is based on floating rates throughout the tenure.
Bank may also offer customized products on fixed or hybrid pricing (T&C apply).

One time charges to process your application processing, income estimation, legal opinion on property, insurance charges & mortgage / charge creation charges will be applicable wherever required. These charges are non-refundable irrespective of the outcome of your application.

T&C apply

We accept postdated cheques, monthly deposit of cash, cheque in account, direct debit.

You may reimburse either through monthly instalments, balloon/partial payments only two allowed a year or an early settlement after paying the applicable penalty.

Firstly, we will open a non-checking repayment account for you, where you can easily deposit your monthly instalments through any BAFL branch. You may be required to hand over 12 postdated checks in the first year after disbursal of the facility.

We issue annual “Statement of Accounts“. The statement would include comprehensive details on principal repayment, outstanding balance, BAFL mark up and penalties (if any) during the year.

Yes for your piece of mind and to check the authenticity of the property title documents, we sought Clear Legal Opinion from Bank’s solicitor, pre and post disbursement legal requisites and charge very minimum cost that must be borne by the applicant. See “schedule of charges”

Our staff is quite supportive and always there to serve you. You can visit our Consumer Finance center(s) or call on the numbers provided.

Yes, you can claim tax rebate against your Housing Finance mark-up paid during the year.

  • We provide multiple financing options i.e. Home/apartment purchase, home construction on own plot, plot purchase + construction, home renovation, balance transfer facility, green solar solutions
  • We provide an End to End advisory services during financing tenure.
  • Our policy is to secure your investment by providing mandatory Life and Property insurance at economical rates.
  • We offer Housing Finance with no minimum and maximum limit.
  • Your property Title documents are thoroughly examined by our legal experts, to insure any possible future issues regarding legal deficiency in the property/security.

We allow dual financing (standard product) after observing your existing debt burden. Further the purpose of Housing finance shall be strictly residential and the cumulative finance of both facilities applied shall falls within your overall limit. Moreover, if you apply for an additional finance for renovation or extension for the same house on which you have already availed finance, we do not disburse an additional finance until 2 years have lapsed from the date of last finance.

We do finance under construction properties but the financing criteria will be slightly different. You will apply for the “plot purchase and construction”. Initially we will finance up to -60%-70% of the property value (provided grey structure is completed) and rest of the financing will be disbursed in tranches to complete the rest of the construction.

Related Links

Housing Finance Department
www.sbp.org.pk

Prudential Regulations
www.sbp.org.pk