Home Loan Calculator
Explore your options in detail using our home loan calculator to get the best loan package to achieve your dream home
Payment Breakdown
Where your money goes
Principal——
Total Interest——
Down Payment——
Monthly EMI
—
for — months
Principal
—
Total Interest
—
Estimated Range
Cost Distribution
Principal (Loan)
—
Total Interest
—
Down Payment
—
Compare Pakistan Banks — Live Rates 2024
Yearly Payment Schedule
| Year | Opening Balance | Principal Paid | Interest Paid | Total Paid | Closing Balance |
|---|
Show All Years ▼
Tips for Getting the Best Home Loan
Higher Down Payment
A 30-40% down payment significantly reduces your EMI and total interest over the loan tenure
Compare All Banks
Even 0.5% rate difference saves PKR 3-4 Lakh on a PKR 50 Lakh loan over 20 years
Reducing Balance
Always prefer reducing balance over flat rate — interest reduces as you repay principal
Pre-Approval First
Get bank pre-approval before property hunting — strengthens your position with sellers
Frequently Asked Questions (FAQs)
What is KIBOR and how does it affect home loan rates? ▾
KIBOR (Karachi Interbank Offered Rate) is Pakistan's benchmark interest rate set by the State Bank of Pakistan. Most variable-rate home loans are priced as "KIBOR + spread". When SBP changes its policy rate, KIBOR moves accordingly, which affects your monthly EMI if you have a variable rate loan.
What is the minimum down payment for a home loan in Pakistan? ▾
Most Pakistani banks require a minimum down payment of 20-30% of the property value. For a PKR 1 Crore property, you need at least PKR 20-30 Lakh. Meezan Bank and other Islamic banks typically require 25-30% as their minimum equity contribution.
How is compound interest calculated in home loans in Pakistan? ▾
Pakistani banks use reducing balance method — interest is calculated monthly on the outstanding principal balance. As you pay EMIs, your principal reduces, and so does the interest component. This is more borrower-friendly than flat rate. Formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1) where r = monthly rate, n = total months.
What is the basic eligibility criteria for home loans in Pakistan? ▾
General eligibility: Pakistani citizen (18-65 years), minimum monthly income PKR 30,000-50,000, employed for at least 1-2 years or business running for 2-3 years, clean credit history (no defaults), CNIC, valid property documents, and debt-to-income ratio below 50%.
What is the difference between Islamic and conventional home loans? ▾
Conventional loans charge interest (riba) which is prohibited in Islam. Islamic home financing uses "Diminishing Musharakah" — the bank and customer co-own the property, and the customer gradually buys out the bank's share by paying rent + acquisition price. Both have similar effective costs but Islamic financing is Shariah-compliant.