Money, Finance and Banking Blog in Pakistan
Posts tagged Mortgage
Is HBFC’s Rs4.5 billion Financing Enough?
Feb 2nd
In a recent press release House Building Finance Corporation Limited (HBFCL) has announced that its financial position improved significantly during tenure of current government. HBFCL hopes that it will result in greater organizational stability,
HBFCL reports that it disbursed loans of Rs4,556 million in the housing sector during current government’s tenure and recovered Rs6,300 million. According to report, average loan size was Rs600,000.
If we look at the figures, we have some interesting observations. The disbursement of Rs4.556 billion in around 23 months – around Rs198 million disbursement per month – is insufficient compared to size of house finance market major share of More >
Ban on Auction of Mortgaged Properties Lifted
Jul 30th
The government of Pakistan has decided to lift ban on auction of properties mortgaged by defaulters of the Zarai Taraqiati Bank Limited (ZTBL) and the House Building Finance Corporation Limited (HBFCL).
The decision has been taken in the light of the Supreme Court of Pakistan’s decision of February 11, 2009.
It may be noted that the Minister for Finance, in June 2008, had announced stoppage of auction of mortgaged properties of the defaulters of the Zarai Taraqiati Bank and the House Building Finance Corporation.
However, the Supreme Court of Pakistan, in its decision on February 11, 2009, revived the power of investment banks More >
Builders Urges Government to Enhance Funding for Housing
Jul 27th
The Association of Builders and Developers (ABAD) has urged the government to use the services of House Building Finance Corporation for meeting housing needs of the middle and low-income people.
Referring to an announcement by President Zardari about building one million housing units, ABAD in an open letter to the government stressed the need for unhindered provision of finances for the housing and construction sector.
In its letter, ABAD said there were several factors responsible for the shortage, the most important being the dearth of housing finances on easy and affordable terms. The construction of one million homes, it said, required a More >
SBP Plans to Develop Secondary Housing Mortgage Market
Jun 14th
Housing finance portfolio of banks and development finance institutions (DFIs) in Pakistan as on December 31, 2008 was Rs88.2 billion –a growth of almost 300 per cent in last five years.
“Despite achieving significant growth, the mortgage debt to GDP ratio is even less than 1 per cent –a concern when compared to 5 per cent in India, 18 per cent in Malaysia and 15 per cent in China”, Muhammad Kamran Shehzad, Deputy Governor State Bank of Pakistan, said when presenting his paper at a World Bank organised South Asia Regional Housing Workshop in Jakarta recently.
By conservative estimates, there is already More >
