Alfalah Bank's Home Finance Offer

Alfalah Home Finance

Unlock the door to a home that’s unique to you. There’s a wide range of home finance solutions available for you at Bank Alfalah.

So whether you want to buy, build or renovate your space, there’s something specific available just for you.

Alfalah Home Buyer: Acquire a home that suits you

• Financing of up to 70% of the value of the property

• Payment tenure options from 3 to 20 years

 Alfalah Build Your Home: Get financing to construct your home on an empty plot

• Financing of up to 100% of the construction cost

• Payment tenure option from 3 to 20 years

 Alfalah Plot and Build: Choose your plot. Build your home

• Financing up to 70% of the value of constructed home

• Payment tenure option from 3 to 20 years

 Alfalah Home Improvement: Renovate or expand your existing home

• Financing of up to Rs. 3.5 million or 40% of the surveyed value of your home (whichever is lower)

• Payment tenure options from 3 to 20 years

 Alfalah Home BTF: Repaying your home finance has never been simpler

• Transfer up to 100% of the existing finance

• Payment tenure options from 3 to 20 years

Eligibility:

• You must be a Pakistani National Identity Card Holder
• Age at the time of application between 23 years to 55 years at the time of application, subject to maximum age of 60 for salaried and 65 for other types of customers, at the time of maturity of finance.
• Minimum take home income of Rs 50,000- per month from all sources.
• The financing amount is at least Rs.2 million (Rs. 20 lacs) or above.
• If you are a non-resident salaried individual you must earn a minimum gross monthly verifiable income equivalent to USD 5,000.
• You must be a permanent employee, currently employed with total employment experience of at least 2 years.
• If you are a professional contractual employees (bankers, engineers, doctors, architect etc), you must be currently employed with total employment experience of at least 3 years.
• If you are self employed with a stream of income generated from property rent/return on fixed deposit /DSC/SSC, you must have had the source of income for at least last 6 months.
• If you are a businessman, you must be running a business for at least 5 years with a satisfactory track record of either an individually owned or a family business.
• The property you want to mortgage should be located in Karachi, Lahore, Rawalpindi or Islamabad.

Finance Eligibility:

Quantum of financing is dependent on the monthly income as well as the existing consumer financing availed by the customer and the volume of domestic/kitchen expenses. These factors are used to determine your affordable monthly repayment capacity within the guidelines and limitations defined by SBP as well as the Bank’s internal policies.

Any of your blood relations (major) and spouse may be made a co-borrower to the financing. (MPP may be proportioned between the customers’ income for loan eligibility).

Documents Required

The following documents are required to be submitted by an applicant along with the completed application Form.

Basic Documents:

• 2 recent passport sized colored photographs.
• Copy of Computerized NIC (original to be shown at our office).
• Bank Statement for the last 6 months (original or attested).
• Copies of complete chain of title documents of the property being offered (if identified).
• Processing fee check / pay order favoring “Bank Alfalah Ltd.
• Life Insurance (MPP) and property insurance (PI) forms.
• Letter of understanding.*

Additional documents for salaried resident Pakistanis:

• Salary Certificate (original) from the employer, showing the gross salary, deductions and length of service.
• Latest Salary Slip / Pay Slips duly attested by the HR department
• Employment Verification Form signed by the employer.
• Salaried Director – Copy of Form 29 / Form A.

Additional documents for salaried Non-Resident Pakistanis (NRPs):

• Copy of Pakistani Passport valid for at least next 6 months & NICOP attested from Pakistani Consulate /Employer’s HR Manager (BAL’s representative office where available can also attest the documents to facilitate the transaction).
• Copy of Contract / Work Permit / Iqama / Residence Permit or any other document evidencing customer’s stay in abroad.
•  Copies of last 3 years Tax Returns (not applicable for Middle Eastern & other countries where tax is not mandatory or tax exemption is held)
• Personal Guarantee of a resident Pakistani as acceptable to the Bank 
• The customer shall be required to open an account with the Bank for liquidating his home finance liability through foreign remittances by using normal banking channels
• An affidavit stating that the sale proceeds of the property on dis-investment shall not be repatriated in foreign exchange or for credit to a Foreign Currency Account of the customer

Additional documents for Businessmen/Self-Employed Individuals (as applicable):

• Copy of current professional association membership / trade body membership certificate (if applicable).
• Deed of Partnership + Undertaking & NOC as per Bank format.
• Sole Proprietorship Letter / Certificate from customers Bank.
• Copy of latest Form 29 duly attested by the Company Secretary.
• Letter from company secretary confirming either the status and share-holding or remuneration (where applicant is a Director / paid Director of company).
• Copies of last 3 years Income Tax Returns and / or Assessment orders

 Mark-Up Rate Structure

The floating rate option is a combination of a base rate and Bank margin – the base rate generally used in similar financing products is 1 Year – i.e. the Karachi Inter-Bank Offered Rate (KIBOR *) as prevalent at the start of every month.

Current rate structures are as follows:

Resident salaried customers: 1 Year KIBOR + 3.50% = applicable mark-up rate

Other customers: 1 Year KIBOR + 4.50% = applicable mark-up rate

Applicable rate will be the rate prevailing at the month of booking and subsequent anniversaries. These rates are revised annually and applicable installments are conveyed through a yearly repayment schedule. Any change in rate is subject to the change in KIBOR in the anniversary month.

Insurance:

Your life and property are insured to the extent of the outstanding principle liability and structure value respectively. The insurance companies upon receipt of prescribed documents settle all the claims in line with the terms of the insurance arrangement made with them.

If you have an existing life insurance policy equivalent to at least the financing amount from an insurance company acceptable to the bank, this can also be endorsed in favor of the Bank.

Process flow of application:

1.         Alfalah Bank provides you with all the information you need about Bank Alfalah Home Finance. This can be through a face-to-face meeting with their Relationship Officer or over the telephone or through mail / email.
2.         You complete the application form and submit it to the Bank, together with the required documents to give basic information about your sources and quantum of income as well as the amount of funding you require.
3.          Once you have decided on the amount of funding you require and finalized the property, you can provide the Bank with the property documents.
4.          The Bank will make some inquiries about your financial position/ circumstances.
5.          The Bank carries out a valuation of the property and verifies your sources of income.
6.          Once the Bank has processed your case and it is approved, they will send you an offer through a “Facility Advice Letter”.
7.          You will sign the Facility Advice Letter and return it to the Bank.
8.         The Bank’s Documentation Control Center will get in touch with you to complete Finance & Security documentation including legal opinion on the title documents of the property and also the life (Mortgage Protection Plan) & property insurance.
9.          You will sign the Finance Agreement and Charge documents.
10. ·         A Bank representative will accompany you to the Registrar’s office on the appointed date (for purchase transactions only) with the Bank’s check against the financing for conveyance of the property – thereafter, your home finance begins.

Repayments:

The loan is repaid through monthly installments as per the repayment schedule provided to you.

For your convenience, the following options are available to make the monthly repayments easier by their due date:

•     12 post dated checks to Bank Alfalah as per the relevant schedule
•        Cash deposit in your “Repayment Account”* with Bank Alfalah
•      Check deposit in your “Repayment Account” with Bank Alfalah

You can contact the Bank for further enquiries via the following means;

Karachi

8th Floor, Business Avenue

P.E.C.H.S. Block-6

Shahra-e-Faisal, Karachi

Tel: 021-34324284 – 34324291

Fax: 021-34324241-42

Lahore

Consumer Finance CentreFB-6 Awami Complex, 1-4 Usman BlockNew Garden Town, Lahore042-35888630-39, 042-35940458-9

Islamabad

I-8 Markaz,Islamabad

Tel:051-4864714 – 4864708

Fax:051-34864708