State Bank of Pakistan through a circular has informed Presidents / Chief Executives of Banks and DFIs that with the aim to further facilitate the promotion of Housing Finance, Prudential Regulations (PRs) for Housing Finance have been revised in consultation with the stakeholders. Accordingly, certain amendments have been made in the PRs which are as under:

i. Regulation HF-l(4): Development of Financing Documents: In addition to existing requirements, banks/DFls are further advised to obtain the thumb impression(s) along with the borrower’s signature(s) on financing and recourse documents. The banks/DFls are also encouraged to provide terms and conditions in Urdu language for better understanding of the customers and read out the same to the customers before finalizing the documentation process.

ii. Regulation HF-l(08): Information Disclosure: For the purpose of calculating the Annualized Percentage Rate, the number of days in a year has been changed to 365 days from 360 days.

iii. Regulation HF-l(11): Facilities to Related Persons: For the purpose of bringing clarity in the said regulation, amendment has been made that in case of resignation/separation/termination, staff housing finance should be monitored and serviced as commercial housing finance.

iv. Regulation HF-2: Types of Housing Finance: The said PR has been amended to the extent that the borrower can avail additional housing finance after the completion of two (02) years instead of three (03) years from the last date of disbursement. Moreover, the time to avail Balance Transfer Facility (BTF) in housing finance has also been reduced to eighteen (18) months from three (03) years.