SBP - Banking Sector / Federal Board of Revenue

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The recent State Bank of Pakistan (SBP) revisions to the Housing Finance Prudential Regulations (Circular No. 04 of 2026) are designed to make homeownership significantly more accessible. By relaxing income constraints, lowering upfront costs, and speeding up the approval process, the central bank is making it much easier for both salaried and non-salaried individuals to secure mortgages.

Here is a direct comparison of the new parameters against the previous standard regulations:

Feature / Metric	Previous SBP Regulations	New Rule (Circular 04 of 2026)	What This Means For You
Debt Burden Ratio (DBR)	Max 50% of net disposable income	Up to 65% of net disposable income	Larger loan limits: You can dedicate a higher percentage of your monthly income to mortgage payments, qualifying you for a bigger loan on the same salary.
Loan-to-Value (LTV) Ratio	Maximum 85:15	Up to 90:10	Lower down payment: You now only need to provide 10% of the property's value upfront out of pocket, instead of 15%.
Maximum Tenor	Up to 25 years	Up to 30 years	Lower monthly installments: Spreading the loan over an additional 5 years reduces the monthly payment burden, though you will pay more total interest over the life of the loan.
Turnaround Time	Standard banking timelines (often taking 30–45+ days)	Target of 15 working days	Faster approvals: A streamlined timeline allows you to close on a property faster without losing out to cash buyers.
Property Valuation	Traditional, strict multi-step assessment	Streamlined assessment and valuation process	Less red tape: Reduces administrative delays during the property clearance phase.
Documentation & Equity	Rigid standard banking documentation and equity proof	Enhanced flexibility & borrower-friendly docs	Easier processing: Particularly helpful for business owners or non-salaried individuals who may have non-traditional ways of proving income or equity.