Government Housing Scheme Loans in Pakistan: Which Schemes Are Live in 2026

In October 2026 the main live government housing finance options are the federal Mera Ghar Mera Ashiana scheme (up to Rs10 million at a fixed 5% for the first 10 years for first-time owners, through banks and HBFC), Punjab's Apni Chhat Apna Ghar (interest-free loans up to Rs1.5 million to build on your own small plot) and Punjab's Apni Zameen Apna Ghar (free 3-marla plots), each with strict eligibility.

Three government schemes matter most for home buyers in 2026. The federal Mera Ghar Mera Ashiana scheme offers up to Rs10 million at a fixed 5% for the first 10 years. Punjab's Apni Chhat Apna Ghar gives interest-free loans of up to Rs1.5 million to build on a plot you already own.

All three are for first-time or low-income households, and none is a general investment loan. We checked each scheme's status against official and news sources in October 2026; confirm with the bank or programme before applying.

Government housing finance schemes at a glance (checked October 2026)

Sources for each row are in the sections below.

Mera Ghar Mera Ashiana: the federal 5% scheme

This is the federal markup subsidy and risk-sharing scheme, branded as the Wazir-e-Azam Apna Ghar Program. SBP launched it on 24 September 2025, and the terms were widened in early 2026.

Revision details are from ProPakistani (13 March 2026) and Geo News (28 February 2026). Loans already disbursed at 8% were to be adjusted to 5%.

The house size limit is reported inconsistently. ProPakistani says 5 marla. Geo News and an HBFC letter dated 27 April 2026 say up to 10 marla. Ask your bank for the current SBP terms in writing.

Who can apply

• Pakistani citizens with a valid CNIC.
• First-time owners: no housing unit in your name.
• For buying a house or flat, building on a plot you own, or buying a plot and building.

All commercial banks, Islamic banks, microfinance banks and HBFC can lend under it, per the SBP circular. Banks are paid 1-year KIBOR + 3%; the government covers the difference for the first 10 years.

How much it has been used

Up to late February 2026, banks had received 10,594 applications worth Rs32.288 billion, and 344 loans worth Rs810 million had been disbursed, per Geo News. The target is 500,000 units over four years, including 100,000 in FY2026-27, per ProPakistani.

What the 5% really costs: a worked example

The 5% rate is fixed only for the first 10 years. After that, the loan moves to market pricing. Our calculation for a Rs10 million, 20-year loan:

The year-11 rate is illustrative only, using SBP's 23 October 2026 KIBOR. KIBOR in 2036 could be higher or lower. Plan for the step-up from the start.

Apni Chhat Apna Ghar: Punjab's interest-free building loan

This Punjab programme lends money to build a home on a plot you already own. It is not bank finance.

In July 2026, Chief Minister Maryam Nawaz extended the programme. ARY News reported up to Rs1 million interest-free for building an additional floor, and up to Rs500,000 for repairing deteriorating houses.

The delay problem. On 25 August 2026, the Express Tribune reported from Vehari that cases approved between January and 30 June 2026 were still waiting for the first instalment. Applicants had pledged their plots and given guarantee cheques. Akhuwat and NRSP said funds would be released once the Punjab government transferred them.

Apni Zameen Apna Ghar: free plots in Punjab

This scheme gives land, not a loan. The Punjab government describes free 3 marla residential plots for poor and homeless families.

Phase 1 covers 1,892 plots across 23 schemes in 19 districts, including Attock, Faisalabad, Gujrat, Jhang, Kasur, Sahiwal, Sargodha and Vehari. Lahore is not on that list.

Eligibility, per the Punjab government page:

1. Permanent Punjab resident with a valid CNIC.
2. Apply only for a scheme in your own district.
3. You, your spouse and dependent children own no plot or house anywhere in Pakistan.
4. Clean criminal record and no bank default.
5. Apply on the official AZAG portal and upload documents.

A free plot can then pair with Apni Chhat Apna Ghar to fund construction, if you meet both sets of rules.

Roshan Apna Ghar and HBFC: state-backed but not subsidised

Roshan Apna Ghar is SBP's home finance route for non-resident Pakistanis with a Roshan Digital Account. SBP lists variable pricing at 1-year KIBOR (lien-based) or KIBOR + 1.5% (non-lien), and tenors of 3–25 years.

HBFC, the state-owned House Building Finance Company, sells its own Ghar Sahulat Scheme. HBFC lists financing up to Rs60 million at 1-year KIBOR + 3% for salaried borrowers. That is a market rate, not a subsidy. HBFC also lends under Mera Ghar Mera Ashiana.

How to apply for Mera Ghar Mera Ashiana

1. Check you qualify: CNIC, first home, property within the size limit.
2. Choose a lender. Any commercial, Islamic or microfinance bank, or HBFC, can lend under the scheme.
3. Ask for the scheme specifically. Ask the bank to quote under the government scheme, not its normal home loan.
4. Prepare income documents. SBP's 2026 housing finance regulations let banks accept salary slips and bank statements up to 60 days old.
5. Arrange 10% equity and the property's title documents.
6. Get the Key Fact Statement showing the 5% period, the post-subsidy pricing and all fees.
7. Sign and register the mortgage. Loans up to Rs5 million may use a land-record lien instead, per the regulations.

Common mistakes

• Assuming 5% lasts for the full 20 years. It is fixed for the first 10.
• Applying with a house in your name. First-time owners only.
• Buying a property above the size limit.
• Treating the Punjab loan as bank finance. It runs through NRSP, Akhuwat and RCDP.
• Starting construction before the Punjab loan instalment arrives, given reported delays.
• Paying an agent to "guarantee" approval. Applications go through banks or official portals.

This guide is general information; confirm current rates with FBR/the bank/a lawyer before you pay.

Sources