HBFC : Empowering Homeownership in Pakistan

HBFC or the House Building Finance Corporation is a leading financial institution of Pakistan that focuses on financing the houses for its clients.

House Building Finance Corporation was founded in 1952, the major stakeholders of which are the government of Pakistan and the Workers’ Welfare Fund, and the principal objectives which are effective to the Present date, the main aims for the establishment of HBFC are: – to extend affordable housing finance solutions especially for low and middle-income earners.

In its operation, the services and functions of the House building finance corporation have been changed to spur on the development of the growing need for housing in the country, increased home financing for the populace.

To better understand HBFC’s operations and impact, this blog will seek to cover the following topics:

1. Affordable Housing Finance

House building finance corporation’s main role is to provide funds for construction of acquisition or improvement of homes.

As there are still millions of people today who struggle to afford housing in the country, house building finance corporation assumes the role of making every dream of home ownership a reality.

The corporation provides various loan products of residing home financing, reasonable interest rates, long-term loan length, minimized initial payments, and focused on low and middle-income consumers.

House building finance corporation current home financing product offerings revolve around requirements such as buying residential plots, building homes, or even remodeling homes.

Food retailers’ products and services are created to appeal to various income and regional segments and to address the problems of financial exclusion and rural penetration.

In this way, house building finance corporation makes home-ownership not only a dream for the college but a reality for a segment of the society.

In addition, the corporation has a significant task of reinforcing the government’s efforts to achieve affordable housing.

It supports the “Mera Pakistan Mera Ghar” program under which the goal is to build low-cost houses for the population.

In this regard, House building finance corporation provide affordable credit products due to this, many people who hitherto had no means of acquiring housing finance find it easier to own a house.

2. Promoting Sustainable Housing Development

However, apart from offering home loans services, house building finance corporation also aspires to support the construction of efficient homes in Pakistan.

The corporation also acknowledges the importance that housing has for the economy of the country as a whole.

Hence, it aims at improving the realization of efficient construction practices as well as utilization of sustainable materials in efforts to expand housing market.

Developers, builders and government bodies may team up with House building finance corporation to encourage affordable housing schemes.

This funding supports such stakeholders to engage in massive provision of houses for the low income earners, through funding such projects.

The corporation also gives priority to the housing schemes regarding emerging environment-conscious construction technology, energy-efficient building, and green material in the constructive of urban Pakistan.

Moreover, House building finance corporation recently aims at decreasing housing backlog by providing funds to builders of houses in the regions where there is a significant shortage of housing stock.

This proactive approach does not only provides the aid for the housing problem but also boost the economy due to employment of people that are working in the construction or real estate fields.

3. Financial Inclusion and Capacity Building

To support this crucial social aim, HBFC has been given one of its major goals which involves extending housing finance services to those who may not have conventional lending facilities.

A large number of low income earners find it hard to obtain loans because of various factors such as stringent requirements that most commercial banks offer.

On its part, the organization takes a different approach whereby it provides a packaged financial product based on the clients capabilities.

In its effort to increase access to housing finance, House building finance corporation offers easy to fill loan applications and various ways of repaying the loan.

It also provides financial education and consultancy on some of the challenges of home loans so that members will be empowered to make the right choices about their housing investments.

This form of capacity building is highly important to the first time home buyers most of whom are likely to lack knowledge about legal requirements for obtaining a loan and the specifics of handling credit obligations.

house building finance corporation has also worked in throwing light on increasing the spread of access to formal financial services especially in the rural belt.

It seeks to expand its network so that people in these categories can also embrace its home financing products.

Conclusion

Among all the institutions that were important in the housing finance sector in Pakistan, the House Building Finance Corporation (HBFC) has played a very significant role with the vision to help make home ownership a possible reality among the Low and Middle income earners in the country.

By the action of providing affordable housing finance, enabling and promoting sustainable development, and extending financial services, House building finance corporation remains relevant to ensuring adequate housing in the country.

Financing both independent home owner-ships and massive housing projects, this organization facilitates the socio-economic growth of the society in Pakistan and empowers more people to afford homes.

Also read: HBFC’s March Towards Modernization