A. Legal and Regulatory Framework
A.1 Legal and Regulatory Framework
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Basis of the legal system: Civil, Common, Islamic, Other? (Describe) | Common, Islamic | Common, Islamic | Common, Islamic | Country Editor | A.1.1 |
| Are there specific laws that deal with mortgages? | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.2 |
| Registration/Transfer of titles: | A.1.3 | ||||
| Does the law clearly define different types of property rights? | Yes | Yes | Yes | Constitution of Pakistan | A.1.3.1 |
| Are property rights easily transferable? | No | No | No | Country Editor | A.1.3.2 |
| Identify barriers to the registration/ transfer of property title. | Manual records, Bureaucratic inefficiencies | Manual records, Bureaucratic inefficiencies | Manual Records, bureaucratic inefficiencies | Country Editor | A.1.3.3 |
| Typical number of days needed for the transfer of title | 144.10 | 156.60 | 156.60 | WDI | A.1.3.4 |
| Can liens be effectively enforced? | No | No | No | Country Editor | A.1.4 |
| Cost of foreclosure process as a percentage of the value of a typical loan? | Not available | Country Editor | A.1.4.2 | ||
| Main causes of inefficiencies (legal, judiciary, administrative, cultural, etc.) | Weak legal framework, Administrative | Weak legal framework, Administrative | Weak legal framework, Administrative | Country Editor | A.1.4.3 |
| Are there legal constraints on the types of mortgage products that are permitted? | No | No | No | Country Editor | A.1.5 |
| Are there legal constraints on mortgage features? | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.6 |
| Interest rate caps | No | No | No | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.6.1 |
| Loan-to-Value cap | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.6.2 |
| Payment-to-Income maximum | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.6.3 |
| Other | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.6.4 |
| Are there consumer rights for mortgage lending? | No | Country Editor | A.1.7 | ||
| Are there disclosure requirements for mortgage lending? | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Prudential Regulation | A.1.8 |
| Is there specialized legislation covering: | A.1.9 | ||||
| Issuance of covered mortgage bonds | No | No | No | Country Editor | A.1.9.1 |
| Issuance of RMBS | No | No | No | Country Editor | A.1.9.2 |
B. Housing Finance Subsidies
B.1 Subsidies to Housing Finance Institutions
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidized funding sources for mortgage lenders? | No | No | No | Country Editor | B.1.1 |
| Special government lines of credit | No | No | No | Country Editor | B.1.1.1 |
| Government supported liquidity facility | No | No | No | Country Editor | B.1.1.2 |
| Labor or other tax funds for mortgage lending | No | No | No | Country Editor | B.1.1.3 |
| Tax breaks on mortgage bonds or RMBS | No | No | No | Country Editor | B.1.1.4 |
| Loss and/or cash flow guarantees for RMBS | No | No | No | Country Editor | B.1.1.5 |
| Other | No | No | No | Country Editor | B.1.1.6 |
| Is the lending side of the housing finance system subsidized? | No | No | No | Country Editor | B.1.2 |
| Shared credit risk through public/private mortgage insurance | No | No | No | Country Editor | B.1.2.1 |
| Guarantees for mortgage loans | No | No | No | Country Editor | B.1.2.2 |
| Other | No | No | No | Country Editor | B.1.2.3 |
B.2 Subsidies to Households
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are there subsidies to households on housing finance? | Yes | Yes | Yes | Country Editor | B.2.1 |
| Interest rate subsidies by special government funds | No | Country Editor | B.2.1.1 | ||
| Buy-down of monthly/interest payments | No | Country Editor | B.2.1.2 | ||
| Down-payment subsidies | No | Country Editor | B.2.1.3 | ||
| Subsidies to savings for mortgage loans | No | Country Editor | B.2.1.4 | ||
| Mortgage interest deductibility from income tax | Yes | Yes | Yes | Income Tax Ordinance 2001 | B.2.1.5 |
| Other | No | Country Editor | B.2.1.6 | ||
| Reach of subsidies in 2.1.1 to 2.1.4 ? | B.2.2 | ||||
C. Taxation
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What taxes apply to Residential Real Estate? | C.1 | ||||
| Tax on property (home-owners) | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.1.1 |
| Property transaction taxes (purchase/selling) | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.1.2 |
| Mortgage transaction taxes | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.1.3 |
| Tax on mortgage interest pmts | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.1.4 |
| Tax on capital gains on property | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.1.5 |
| Other | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.1.6 |
| Are there tax benefits on rental properties? | Yes | Yes | Yes | Income Tax Ordinance 2001 | C.2 |
| Describe tax benefits (if any) from C.1.2 | No benefit- Adavnce tax paid is adjustable | No benefit- Advance tax paid is adjustable | Rental income from properties are considered as separate froup of income under the income tax law, and hence separate rate of tax is applied on such incomes. | Income Tax Ordinance 2001 | C.2.1 |