Mera Ghar Mera Ashiana Calculator 5% Home Loan
Mera Ghar Mera Ashiana is the government's subsidised home loan scheme for first time home owners. You pay a fixed 5% for the first 10 years, and loans go up to Rs 1 crore with just 10% down. The calculator shows your payment during the subsidy and what it becomes after year 10.
- Checked against Mera Ghar Mera Ashiana sources, October 2026
- Rates updated 29 October 2026
- 1 year KIBOR 12.81%
Valuation, legal opinion, stamp duty and transfer costs are extra.
Mera Ghar Mera Ashiana government housing scheme at a glance
| Rate | Fixed 5% for the first 10 years. After that, the bank's normal rate, typically 1 year KIBOR + 3%. |
|---|---|
| After year 10 | With 1 year KIBOR at 12.81%, about 15.81% at today's rates. |
| Loan size | Up to Rs 1 crore. |
| Down payment | 10% of the property value (financing up to 90%). |
| Tenure | Up to 20 years. |
| Property | A house up to 10 marla (2,720 sq ft) or a flat up to 1,500 sq ft. Buy, or build on land you own. |
| Who qualifies | First time home owners with a CNIC who do not own a house or flat in their name. |
| Where to apply | Participating commercial banks, Islamic banks, microfinance banks and HBFC. |
What Mera Ghar Mera Ashiana is
Mera Ghar Mera Ashiana is a federal government scheme run through the State Bank of Pakistan to help first time buyers own a home. It was launched in September 2025. The government pays part of the markup for the first 10 years and shares some of the risk with banks, which lets banks lend at a low fixed rate with only 10% down.
In March 2026 the scheme was made simpler and bigger. The earlier two tiers of 5% and 8% were replaced by one rate of 5% for everyone, borrowers already paying 8% were moved to 5%, and the maximum loan was raised from Rs 35 lakh to Rs 1 crore. The size limit was also raised to 10 marla for houses and 1,500 square feet for flats.
How your payment works
For the first 10 years you pay a fixed 5% a year. That is far below normal home finance, which costs around 15.8% at today's KIBOR of 12.81%. On a Rs 81 lakh loan over 20 years, 5% means a monthly payment of about Rs 53,456, compared with around Rs 111,539 at the normal rate.
After year 10, the subsidy ends and the remaining balance is priced at the bank's normal rate, which banks such as Standard Chartered describe as 1 year KIBOR plus 3%. Your payment will go up at that point. The calculator shows both payments, using today's KIBOR for the second period. Nobody knows what KIBOR will be in 10 years, so treat that figure as a guide and plan for some room in your budget.
Banks taking part have said there is no processing fee and no penalty for paying early. Paying off part of the loan during the first 10 years, when your payment is low, is a good way to soften the jump in year 11.
Who can apply
You must be a Pakistani citizen with a CNIC buying your first home. You cannot already own a house or flat in your name. The loan can be used to buy a house, flat or plot, or to build on land you already own, as long as the house is no more than 10 marla or the flat no more than 1,500 square feet.
Each bank applies its own checks on income, age and credit history. Standard Chartered, for example, lists income of Rs 50,000 a month and also accepts some overseas Pakistanis in GCC countries, Singapore and Malaysia. Your payment should be comfortably affordable both now and after year 10.
How to apply
- Choose a participating bank, Islamic bank, microfinance bank or HBFC branch
- Bring your CNIC, salary slip or bank statements, and an employment letter or proof of income
- Have the property documents ready so the bank can arrange the legal check and valuation
- Keep your 10% equity and the transfer and registration costs ready
Worked example
Here is what a Rs 90 lakh house with 10% down over 20 years looks like at 5% a year, using the same maths as the calculator above.
| Property price | Rs 9,000,000 |
|---|---|
| Your down payment (10%) | Rs 900,000 |
| Amount financed | Rs 8,100,000 |
| Monthly payment | Rs 53,456 for 120 months |
| Monthly payment from year 11 | Rs 83,830 at about 15.81% |
| Total markup | Rs 8,374,354 |
| Processing fee | Rs 0 |
| Salary needed (50% rule) | Rs 106,913 a month |
Over the full term you would pay Rs 16,474,354 in total, of which Rs 8,374,354 is markup. Because the rate resets every year with KIBOR, treat this as a guide rather than a fixed figure.
Frequently asked questions
What is the Mera Ghar Mera Ashiana interest rate?
A fixed 5% a year for the first 10 years. After that, the bank's normal rate applies on the remaining balance, typically 1 year KIBOR plus 3%.
How much loan can I get under Mera Ghar Mera Ashiana?
Up to Rs 1 crore, with financing of up to 90% of the property value, so you need at least 10% down.
Who is eligible for Mera Ghar Mera Ashiana?
First time home owners with a valid CNIC who do not own a house or flat in their name. Banks also check your income and credit history.
What size of house is allowed?
A house of up to 10 marla (2,720 square feet) or a flat of up to 1,500 square feet.
Which banks offer Mera Ghar Mera Ashiana?
Participating commercial banks, Islamic banks, microfinance banks and HBFC. Islamic banks offer it through Diminishing Musharakah.
What happens to my installment after 10 years?
The subsidy ends and the remaining balance is priced at the bank's normal rate, so the installment goes up. The calculator shows an estimate using today's KIBOR plus 3%.
Is there a processing fee or prepayment penalty?
Banks taking part have said there is no processing fee and no prepayment penalty under the scheme. Confirm with your bank when you apply.
Sources
- Business Recorder: loan size raised to Rs 10 million (March 2026)
- Mettis Global: housing loan rate cut to 5% (March 2026)
- Standard Chartered Saadiq: Mera Ghar Mera Ashiana terms
LoanHissab is not linked to Mera Ghar Mera Ashiana. We checked these details against the sources above in October 2026. Rates, fees and rules change often and your offer depends on your own profile, so always confirm the final terms with Mera Ghar Mera Ashiana before you sign. Found something out of date? Tell us and we will fix it.