 Between 1997 and 2006, the price of the typical American house increased by 124%  The USA home ownership rate increased up to 69.2% in mid  Household debt grew to $14.5 trillion in midyear 2008, 134% of disposable personal income.

 If mortgage is not handled properly it become a dead end  For example in America:  A loss of 1.3Trillion Dollars  More than 100 banks files bankruptcy  This takes the whole world into recession  ARM rates are used

 GDP of Pakistan is 2.4%  Per capita income is 1042 $  Inflation is 19.3%  Foreign Reserves become 11.3 billion $ Source: Economic Survey of Pakistan

 Present Housing Stock  Urban  Rural  Pacca  Semi-Pacca  Kutcha 19.3 Million 32.3% 67.7% 21.0% 40.0% 39.0%

 Household size  Occupancy  Housing Shortfall  Annual Requirement  Annual Production  Recurring Annual Shortfall 6.6 Persons per house 3.3 Persons per room 4.3 Million 570, , ,000 Source: National Housing Authority, Ministry of Housing & Works

 Municipal Area  Rural Area  Total Area Sq.km Sq.km Sq.km Source: CDA, Islamabad

 Existing Housing units in Sectors  Required Housing Demand  Existing ‘Shortage  Additional Demand per year 75,000 units 125,000 units 50,000 units 4,000 units Source: CDA, Islamabad

Consumer Financing

 Total Financing in housing finance in FY is Rs. 18 Billion   Share in Pie is 16.39%    Source: Deputy Governor State Bank of Pakistan   Source: Economic Survey of Pakistan

 Total banks selected= 34  Total Banks visited= 34  Banks provide services= 20  Banks not provide services= 14

 Public banks  Private banks  Islamic banks  Foreign banks

 Data collected from banks i.e. Brochures  Data collected from internet  Takes one week to complete

Variable defined  Mark-Up Rates  Financing Limit  Processing fee  Tenure  Age limit  BTF

PUBLIC BANKS NBP1 BOK0 BOP0 HBFC1 FOREIGN BANKS SCB0 AIB1 BCB1 RBS1 ISLAMIC BANKS BIP1 EGIBL1 DIBL1 DIBPL1 PRIVATE BANKS BAH0 SNR1 KASB1 FABL0

 The Royal Bank of Scotland  Dubai Islamic Bank Private Limited

 Mark-Up Rate: KIBOR %  Loan Range: PKR 0.5 million to PKR 50 million  Loan Tenure: 3 to 20 years  Qualifying Age: 25 to 65 years upon loan maturity  BTF Facility is also available

 Mark-Up Rate: KIBOR + 3%  Loan Range: PKR 1 million to PKR 50 million  Loan Tenure: 3 to 20 years  Qualifying Age: 25 to 65 years upon loan maturity  BTF Facility is also available