Shelter is one of the important human needs that have multiple effects on the society and economy. It can be witnessed through the fact that during the period of recession, developed countries boosted their economies through spending on housing sector. One of the ways of improving capitalization of the housing sector is the provision of housing loans,  thereby leveraging home ownership. The State Bank of Pakistan (SBP) in consultation with the stakeholders has taken a number of initiatives to promote housing finance but still it has to go a long way to address the challenges being faced by the sector.