Meezan Bank Home Financing "Easy Home" Islamic House Financing, Easy Procedure, Affordable House Financing

Meezan Bank Home Financing "Easy Home" Islamic House Financing, Easy Procedure, Affordable House Financing 

Buying a home is ever difficult, even home financing has difficult procedures and hassles. Fortunately Meezan Bank has its best product "Easy Home"

Following information about Easy Home Financing are taken from Meezan Bank Website..

Easy Home is a Shariah-compliant Home Finance facility! One that is comprehensive, affordable, and totally hassle-free. Meezan Bank is committed to meet our customers’ needs in a truly Shariah-compliant manner coupled with dedicated service excellence. Why not have the best of both worlds? Isn't that what you are working so hard for anyway?

Easy Home not only allows you to own your own home by paying easy instalments but also keeps you safely away from interest based financing.


Easy Home works on a Diminishing Musharakah basis

With Easy Home you participate with Meezan Bank in joint ownership of your property, where the Bank will provide a certain amount of financing. You agree to a monthly payment to the bank of which one component is for use of the home, and another for your equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows. When you have made the full investment, which had been agreed upon, you become the sole owner with a free and clear title to the property.

Flexibility and Variety to meet your requirements

• Flexible Financing Tailored to Support You
  • High financing amounts
  • Adequate financing against property value
  • Flexibility to make partial prepayments
  • Minimal processing charges
  • Affordable and competitive instalment amounts with a regular reducing monthly rental
  • Rate relaxation for select MNCs & LCGs

• Quick Processing Time
  Absolutely hassle-free. Quick turn-around-times, with no burdensome complexity or excessive paper work. It is simple, halal, and easy! Click here for details

• Even the eligibility is Easy!
  We at Meezan Bank, as prescribed by Islamic Shariah, seek to guarantee equal access to financing for all qualified applicants, while ensuring that the qualification process is bias-free. Click here for details

• Non Resident Pakistanis
  Non Resident Pakistanis can apply with peace of mind for the fastest processing of their case.

Easy Buyer 

Choose it and get ready to move in!

Features:

• Flexible financing from minimum PKR 500,000/- to PKR 50 million for Salaried, SEP, NRP & Businessmen customers.
• Easy selection of financing tenure from 3 years to 20 years
• Maximum 25 years tenure for Salaried & SEP customer

Bank Investment Ratio (BIR)

• Up to 75% for Salaried / SEP / NRP.
• Up to 65% for Business persons.
• No restriction on early unit purchase / early termination

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Easy Builder

For that special home you want to build!

Easy Builder allows you to get financing for

• Residential construction on applicant’s owned land
• Purchase of land & residential construction
• Enhancement of an already constructed residential bungalow

Features:

• Flexible financing from minimum PKR 500,000/- to PKR 50 million for Salaried, SEP, NRP & Businessmen customers.
• Easy selection of financing tenure from 2 years (excluding construction period of max 12 months) to 20 years.
• Maximum 25 years tenure for Salaried & SEP customer

Bank Investment Ratio (BIR)

• Up to 75% for Salaried / SEP / NRP.
• Up to 65% for Business persons.
• No restriction on early unit purchase / early termination after 12 months of completion

Easy Renovate

Make your home even better or just repair it!

Features:

• Flexible financing up to 30% of property value but within the range of PKR. 300,000/- to PKR. 10 million.
• Easy selection of financing tenure from 2 years up to a maximum of 15 years

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Easy Replace

Transfer your existing mortgage!

You can now continue to enjoy your home, but with the added satisfaction and peace of mind you always wanted. Meezan Bank will help you switch your existing liability over to us and let you enjoy the benefits of Halal and totally flexible financing.

Features:

• Flexible financing from minimum PKR 500,000/- to PKR 50 million for Salaried, SEP, NRP & Businessmen customers.
• Easy selection of financing tenure from 3 years to 20 years 
• Maximum 25 years tenure for Salaried & SEP customer

Bank Investment Ratio (BIR)

• Up to 75% for Salaried / SEP / NRP.
• Up to 65% for Business persons.
• No restriction on early unit purchase / early termination after 12 months of completion

Payment Plans UMI Model Easy Home is structured under the concept of Diminishing Musharakah where Meezan Bank and Customer enter into a Musharakah Agreement whereby both the parties provide their investments to be utilized for the purposes of purchase/construct/renovate the property. The Joint ownership is created in the property between Bank & customer by virtue of the Musharakah agreement. (This is based on the principle of Shirkat ul Milk) Bank’s share is divided into units and is given to the Client on rent and Client promises to purchase Bank’s share (units) over the tenure of transaction Client purchases the units every month and will eventually become the owner of the property. Rental amount is adjusted according to the bank’s share (units) remaining in the property. In UMI , the Musharakah unit price remains constant through out the financing period. Step-up-Model The Step-up Payment plan is introduced for customers who intend to avail maximum financing facility with lower instalments. The step up model is based on Shariah-compliant structure of Diminishing Musharakah. In this model, the bank’s share is divided into Musharakah units and in the initial half of the facility tenure, the customer purchases one Musharakah unit from the bank every month and in the later half of the facility tenure, the customer purchases two Musharakah units from the bank every month. Thus the monthly instalment during initial years is comparatively lower which is easily affordable. This model is a Shariah-compliant alternative available to the customers who wish to avail maximum financing facility from the Bank. Payment Frequency and Mode Monthly instalments, through Direct Debit of customers account maintained at any branch of Meezan Bank Ltd. Profit Calculations Meezan Bank's Profit margin is correlated to the conventional mortgage market trends At Meezan Bank, the profit margin is directly correlated to market trends to provide a competitive product to our customers. Shariah allows the use of any conventional market factor as a benchmark to determine the profit rate of a particular product. The mere fact that the applied profit rate of our product is based on similar factors used in determining the applied rate of interest of a mortgage does not render the transaction or the contract invalid from the Shariah perspective, and neither does it make the transaction an interest-bearing one. On the other hand, it is the underlying structure of the product that determines its Shariah compliance.

For Salaried Customers including SEP’s, NRP’s & Merchant Navy

Fixed – 1st Year : K * + 3.00 % p.a
Annual Re-pricing : K ** + 3.00 % p.a.
(Floor 8.00% p.a. and Cap 30% p.a.)

* For first year Fixed Rate, “K” denotes KIBOR (Karachi Inter Bank Offer Rate), announced on 1st working day of each calendar month.
** For annual revision, “K” denotes 90 days average of 12-month KIBOR (Karachi Inter Bank Offer Rate), announced for each calendar quarter by the Bank.

For Businessman Customers

Fixed – 1st Year : K * + 4.00 % p.a
Annual Re-pricing : K ** + 4.00 % p.a.
(Floor 8.00% p.a. and Cap 30% p.a.)

* For first year Fixed Rate, “K” denotes KIBOR (Karachi Inter Bank Offer Rate), announced on 1st working day of each calendar month.
** For annual revision, “K” denotes 90 days average of 12-month KIBOR (Karachi Inter Bank Offer Rate), announced for each calendar quarter by the Bank.

• Additional Unit PurchaseAdditional units will be revalued at 3% (In case of property appreciation only)

• Revision of Profit RatesProfit rates will be revised annually on Account Anniversary

Eligibility Criteria

The following parameters define the specific requirements that will constitute an eligible application of Easy Home: Islamic Housing Finance. Particulars Eligibility Citizenship Pakistani and Non Resident Pakistanis as per policy Residence & Work Address Pakistan & other countries (NRP) as per policy Age Minimum age required for a Primary Customer is 25 years. Co-applicant must be over 21 years of age. Maximum 65 years old at the time of maturity of facility for Primary Customer. Maximum 70 years old at the time of facility maturity for Co-applicant. In case of Salaried Person - Applicant and/or Co-applicant, maturity date of facility shall not exceed the date of retirement. Customer / Applicant Primary (or Single) & Co-applicant allowed. Co-applicant must be a immediate family member. Income Salaried Minimum Gross Income of PKR 40,000 per month. 100% Co-applicant income will be clubbed in case of spouse. Self-Employed / Business Person Minimum Gross Income of PKR 75,000 per month. Personal Reference Two personal references (one relative and other office colleague/friend) not living with the customer. Employment Tenure Salaried Permanent job with a minimum 2 years continuous work history in the same industry / field. Self-Employed / Business Person Minimum 3 years in current business / industry.

Additional Required Documents

Shariah Compliant Life Takaful Coverage by M/s. Pak Qatar Takaful Company against very nominal Takaful contribution payable by customer with monthly HF instalment. As per this arrangement, in the event of the death of a customer (due to any cause), the Takaful benefit will cover the outstanding amount. The Takaful cover will also be available incase of customer’s natural or accidental disability. Application Procedure Applying for Islamic Housing Finance is Easy! Simply download the application form and follow the 10 easy steps given below to make your dream of owning a Home, in a truly Halal way, come true. Step 1: Application Form & Initial Payment Submit a filled & signed application form to Meezan Bank. Submit the required cheque for Processing Fee & External Agency costs. Step 2: Required Documents Kindly attach all the required documents, as mentioned below, along with your Application Form: Personal Information Copy of Applicant's CNIC Copy of Co-A pplicants CNIC (if applicable) 2 latest passport-sized colored Photographs of Applicant / Co-Applicant Copy of last paid Utility Bills (Electricity/Gas/Telephone) Copy of CNICs of legal heirs Copy of recent Credit Card Bills and any other credit facilities (if applicable) Copy of professional Degree / Certificate (if applicable) Copy of Rent Agreement (if applicable) Life Takaful documents (Declaration of Good Health / Health Questionnaire) Income Information For Salaried Individuals Employment Certificate including salary, date of joining & present designation Original or Certified salary slip of last three months Previous employment proof (if applicable) Salary A/c Bank statement - last 12 months For Businessman / Self Employed / Professional 3 years proof of business (e.g. Tax Return / Bank Certificate) Copy of NTN Certificate & last three years tax returns Bank Statement of Business Account - Last 12 Months Copy of Partnership deed (In-case of Partnership) Professional Association Membership Certificate / Practice License (if applicable) If you have selected the property to buy or want financing for construction/ replacement/renovation Complete chain of property documents (copies at initial stage & original before disbursement) In the case of a Co-Applicant, all income related documents will also be required. Step 3: Address Verification Meezan Bank will verify your residential & office addresses and the addresses of references submitted. Step 4: Income Estimation For Businessman / Self Employed professionals Meezan Banks External Consultant will contact you to determine your monthly income to help you in obtaining the maximum possible financing from the Bank. For Salaried Individuals Meezan Bank will verify the income with your employer. Step 5: Legal opinion Meezan Bank will obtain a legal opinion on the property documents provided by you. Step 6: Property Valuation Meezan Banks appointed Valuation Agency will evaluate the property to determine its market value Step 7: Credit Approval & Sanction Letter After you have fulfilled all Meezan Banks credit requirements, we will give you a conditional sanction letter. Step 8: Account Opening After approval of the case, you are required to open an account at Meezan Bank. Step 9: Signing of House Finance Agreement After completion of the above steps and approval of your case, you will be required to come to Meezan Bank for signing of the Islamic House Finance Agreement and other legal documents *In Home Construction / Renovation Cases Original Documents will be handed over to the bank at this stage  Step 10: Transfer of Property and Disbursement In Home Buying / Replacement Cases A Meezan Bank officer & authorized lawyer will accompany you and the seller of the property to the appropriate bank (incase of BFT) or registrars office for Property transfer. Original Property Documents will be handed over to the lawyer who, after verification of the documents, will hand over the pay-order to the banker or seller and will then complete the legal formalities on Meezan Bank's behalf. Schedule of Charges The Easy Home application process is subject to the following fees Segment Salaried Businessmen Processing Charges PKR 5,000 PKR 5,000 FED on Processing Charges@ 16%** PKR 800 PKR 800 Legal Report Charges At Actual At Actual Property Valuation Charges At Actual At Actual Income Estimation Charges N/A At Actual *Documentation charges are exclusive of above-mentioned charges and will be obtained at the time of signing of Musharakah Agreement according to the limits of financing. **May varies as announced in provincial budgets. Charity / Late Payment Charges In Easy Home, in the event of any delay in monthly payment without a valid reason, the customer will be required to pay as charity a sum of Rs.500/- (Rupees Five Hundred Only) and an amount @20% per annum on such overdue amount remaining unpaid. web link for further details and contact https://meezanbank.com/easyhome.aspx