Owning a home is a dream for many in Pakistan. However, due to rising housing costs, achieving this dream often requires financial assistance. This is where mortgages come in.
But what exactly is a mortgage? How does it work? And how can you get one in Pakistan?
This comprehensive guide will answer all your questions about mortgages in Urdu. We'll start by explaining the meaning of mortgage in Urdu and then explore different aspects of mortgages in Pakistan.
What is Mortgage in Urdu?
In Urdu, mortgage is translated as "girvi rakna" (گروی رکھنا) or "rahn" (رہن). It refers to a legal agreement between a borrower and a lender, where the borrower borrows money from the lender to purchase a property. The property itself serves as collateral for the loan.
How Does a Mortgage Work in Pakistan?
Here's a breakdown of how mortgages work in Pakistan:
- Application: The borrower applies for a mortgage with a bank or financial institution.
- Eligibility Assessment: The lender assesses the borrower's eligibility based on their credit history, income, and debt-to-income ratio.
- Approval: If approved, the lender offers a mortgage loan with specific terms, including the loan amount, interest rate, and repayment period.
- Property Valuation: The property undergoes an independent valuation to determine its market value.
- Disbursement: Once the valuation is complete and all paperwork is finalized, the lender disburses the loan amount to the borrower.
- Repayment: The borrower starts repaying the loan, with the interest and principal amount, in monthly installments.
Types of Mortgages in Pakistan:
There are different types of mortgages available in Pakistan, each with its own characteristics:
- Fixed-rate mortgages: The interest rate remains constant throughout the loan term.
- Variable-rate mortgages: The interest rate fluctuates based on market conditions.
- Balloon mortgages: The borrower makes smaller monthly payments during the initial years, followed by a larger balloon payment at the end of the term.
- Islamic mortgages: These mortgages comply with Islamic Sharia principles and avoid interest charges.
How to Get a Mortgage in Pakistan:
Here are the steps involved in getting a mortgage in Pakistan:
- Do your research: Research different mortgage options and compare rates offered by various lenders.
- Get pre-approved: Obtain a pre-approval letter from a lender to determine your borrowing capacity.
- Choose a property: Find a property that falls within your budget and meets your needs.
- Submit a formal application: Submit your application along with required documents, such as your income proof, tax returns, and property valuation report.
- Close the deal: Once your application is approved, sign the mortgage agreement and complete the closing process.
Additional Resources:
- State Bank of Pakistan: https://www.sbp.org.pk/
- Federal Mortgage Bank of Pakistan: https://www.fmu.gov.pk/director-general/
- Pakistan Mortgage Refinance Company: https://pmrc.com.pk/
Conclusion:
Understanding the meaning and working of mortgages in Urdu can empower you to make informed decisions about your homeownership journey. By carefully researching options and planning your finances, you can secure a mortgage that fits your budget and helps you achieve your dream of owning a home in Pakistan.
Please note: This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial professional before making any decisions regarding mortgages.
