HBFC: Types of Property Documents

The House Building Finance Corporation (HBFC) in Pakistan provides various housing finance options. To facilitate the loan application process, the HBFC requires specific property documents. Understanding these requirements is crucial for potential borrowers seeking to secure financing for their housing needs.

Types of Property Documents Required by HBFC

1. Ownership Documents

• Title Deed: A copy of the title deed is essential to establish property ownership. This document confirms that the borrower holds legal rights to the financed property.
• Certificates of Ownership: These may be issued by local authorities such as the Tehsildar or Mukhtiarkar, certifying that the individual is the rightful owner of the land or property.
• Land Use Certificate: This document verifies that the land can be used for residential purposes, ensuring compliance with local zoning laws.

2. Property Valuation Reports

• Valuation Certificate: A report from a certified valuer is needed to determine the market value of the property. This helps HBFC assess the loan amount relative to the property’s worth.

3. Building Plans and Approvals

• Approved Building Plan: If applicable, a copy of the approved building plan from local authorities is necessary, especially for new constructions.
• Completion Certificate: For properties that are already built, a completion certificate may be required to confirm that construction meets regulatory standards.

4. Tenancy Agreements

• If the property is rented rather than owned, a tenancy agreement must be provided. This document outlines the terms of rental and confirms occupancy rights.

5. Utility Bills

• Recent utility bills (electricity, gas, water) may be required to verify residency and confirm that the property is connected to essential services.

6. Affidavit and Income Documentation

• An affidavit declaring income may be necessary, particularly for self-employed individuals or those without formal income documentation.
• Additional financial documents such as income tax returns, bank statements, and profit and loss statements can help demonstrate financial stability and repayment capacity.

Financing Amounts and Terms

HBFC offers various financing options based on the type of property and borrower qualifications:

• Financing Limits: The corporation provides loans up to PKR 60 million for purchasing or constructing homes.
• Loan Tenure: Financing terms range from 3 to 20 years, allowing borrowers flexibility in repayment schedules.
• Loan-to-Value Ratio (LTV): HBFC typically finances up to 85% of the property’s market value, which helps reduce the upfront cash burden on borrowers.

Eligibility Criteria

To qualify for HBFC’s housing finance, applicants must meet specific criteria:

• Age Requirements: For salaried individuals, age limits are generally between 23 and 60 years at loan maturity, while self-employed professionals have slightly different criteria.
• Employment Duration: Applicants must demonstrate stable employment or business operations, with minimum tenure requirements varying based on their employment status.

Link:
Loan Application Procedure & Requirements – House Building Finance Company – HBFC
Ghar For HER – House Building Finance Company – HBFC hbfc.com
Housing Finance NRP – House Building Finance Company – HBFC hbfc.com