A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Number of firms originating and funding mortgage loans | 26 | 26 | 26 | State Bank of Pakistan - Housing Finance Review | A.1.1 |
| Types of originating lenders/market share: | A.1.2 | ||||
| Universal/ commercial banks | Not available | Not available | 77% of total | A.1.2.1 | |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | 0% of total | 0% of total | 0% of total | State Bank of Pakistan - Housing Finance Review | A.1.2.2 |
| Non-depository financial institutions specialized in housing finance | Not available | Not available | 23% of total | A.1.2.3 | |
| General non-depository financial institutions | Not available | Country Editor | A.1.2.4 | ||
| Others (e.g. insurance co, pension funds, labor tax funds) | Not available | Country Editor | A.1.2.5 | ||
| Identify the 3 largest loan originating lenders | HBFCL, HBL, UBL | HBFCL, HBL, UBL | HBFCL, HBL, United Bank Ltd. | Country Editor | A.1.3 |
| Are there (quasi) public mortgage lenders: | Yes | Yes | Yes | Country Editor | A.1.4 |
| Universal/ commercial banks | Yes | Yes | Yes | Country Editor | A.1.4.1 |
| Other depository institutions (savings and loans/mutual savings and credit institutions) | No | No | No | Country Editor | A.1.4.2 |
| Non-depository financial institutions specialized in housing finance | Yes | Yes | Yes | Country Editor | A.1.4.3 |
| General non-depository financial institutions | No | No | No | Country Editor | A.1.4.4 |
| Others (e.g. insurance co, pension funds, labor tax funds) | No | No | No | Country Editor | A.1.4.5 |
| Typical lending spreads for mortgages | Not available | Not available | 5.17% | A.1.5 | |
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| as a % of # of loans | Not available | Country Editor | A.1.6.1 | ||
| as a % of outstanding loan amount | 13% | 15.9% | 21.3% | Country Editor | A.1.6.2 |
| Average 1997-2007 | A.1.7 | ||||
| as a % of # of loans | Not available | Country Editor | A.1.7.1 | ||
| as a % of outstanding loan amount | Not available | Country Editor | A.1.7.2 | ||
| Lowest decile of the income distribution served by the dominant mortgage lenders | Not available | Country Editor | A.1.8 | ||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 691.68 USD (millions) | 662.13 USD (millions) | 661.07 USD (millions) | Country Editor | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | .23% | .22% | .24% | Country Editor | A.2.1.1 |
| and as % of all credits outstanding | 1.16% | 1.19% | 1.57% | Country Editor | A.2.1.2 |
| Total # of home mortgage loans outstanding at the end of year | Not available | Not available | 69.52 thousand | A.2.2 | |
| Total amount of home mortgages made in calendar year in millions of USD | Not available | Not available | 206.08 USD (millions) | A.2.3 | |
| and as % of GDP (current) | Not available | Not available | .07% | A.2.3.1 | |
| and as % of all credits originated in calender year | .56% | Country Editor | A.2.3.2 | ||
| Total # of home mortgage originations made in calendar year | 3.93 thousand | State Bank of Pakistan - Housing Finance Review | A.2.4 | ||
| What % of total new mortgages is refinance? | Not available | A.2.5 |
A.3 Housing Finance Products
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | Not available | Country Editor | A.3.1.1 | ||
| Variable rate/indexed | 100% | Country Editor | A.3.1.2 | ||
| Variable rate/discretionary | 0% | Country Editor | A.3.1.3 | ||
| Other fully amortizing loans (e.g. Rollover) | 0% | Country Editor | A.3.1.4 | ||
| Non-fully amoritizing loans (e.g. Price level adjusted/Interest only) | 0% | Country Editor | A.3.1.5 | ||
| Loans based on foreign currency as % of all mortgage products | 0% | Country Editor | A.3.2 | ||
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Fixed in amount | 231.64 USD | Country Editor | A.3.6.1 | ||
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 85 | 85 | 85 | State Bank of Pakistan - Housing Finance Prudential Regulation | A.3.8.1 |
| Typical LTV at origination | Not available | Not available | 48 | A.3.8.2 | |
| Maximum term over which pmt is calculated? | 25 years | 25 years | 25 years | State Bank of Pakistan - Housing Finance Review | A.3.9 |
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (HH income) | 50% | 50% | 50% | State Bank of Pakistan - Housing Finance Review | A.3.10.1 |
| Maximum pmt-to-income ratio (Individual income) | 50% | 50% | 50% | State Bank of Pakistan - Housing Finance Review | A.3.10.2 |
| Typical pmt-to-income ratio (HH income) | 50% | 50% | 50% | State Bank of Pakistan | A.3.10.3 |
| Typical pmt-to-income ratio (Individual income) | 50% | 50% | 50% | State Bank of Pakistan | A.3.10.4 |
A.4 Lending and Servicing Process
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | State Bank of Pakistan | A.4.1 |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Central Bank/Ministry of Finance | Yes | Yes | Yes | State Bank of Pakistan | A.4.2.1 |
| Secondary market facility | No | No | No | Country Editor | A.4.2.2 |
| Major Lender | No | No | No | Country Editor | A.4.2.3 |
| Other | No | No | No | Country Editor | A.4.2.4 |
| Are loan originations conducted by others than employees of lenders? | No | No | No | Country Editor | A.4.3 |
| % of Originations done on the internet | Not available | Country Editor | A.4.3.2 | ||
| Others (Specify in Notes) | Not available | Country Editor | A.4.3.3 | ||
| % of appraisals done by employees of lenders | 100% | Country Editor | A.4.4 | ||
| Do third party servicing institutions exist? | Yes | Yes | Yes | Country Editor | A.4.5 |
| % of loans serviced by originators/lenders | 100% | 100% | 100% | Country Editor | A.4.6 |
A.5 Credit Risk Assessment
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | State Bank of Pakistan | A.5.2 |
| Are there legal/regulatory constraints to gaining access to credit information? | Yes | Yes | Yes | Country Editor | A.5.2.1 |
| What percentage of mortgage originations use credit scoring? | 100% | 100% | 100% | Country Editor | A.5.1 |
| Is mortgage default insurance available? | No | No | No | Country Editor | A.5.3 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | Primary | Primary | Primary | Financial Statements of United Bank and HBL | B.1.1 |
| Wholesale funding: loans from other banks or corporations | Secondary | Secondary | Secondary | Country Editor | B.1.2 |
| Funding through mortgage bonds | Not available | Not available | Not available | Country Editor | B.1.3 |
| Funding through securitization of mortgages | Non-applicable | Non-applicable | Non-applicable | Country Editor | B.1.4 |
C. Housing Microfinance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are non-collateralized housing micro-finance loans offered? | Yes | Yes | Yes | State Bank of Pakistan - Housing Finance Review | C.1 |
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Commercial banks | Yes | Yes | Yes | Country Editor | C.2.1 |
| Specialized non-depository MFIs | No | No | No | Country Editor | C.2.2 |
| NGOs | Yes | Yes | Yes | Country Editor | C.2.3 |
| Others | No | No | No | Country Editor | C.2.4 |
| None | No | No | No | Country Editor | C.2.5 |
| Typical lending spreads in HMF | 10 | Country Editor | C.3 | ||
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||
| as a % of outstanding loan amount | .14% | .14% | .14% | Country Editor | C.4.2 |
| Are non-collateralized but secured housing finance products offered (e.g. secured by pension or insurance savings) | No | Country Editor | C.5 | ||
| Lowest income decile served with all non-collateralized housing lending products | Not available | Country Editor | C.6 | ||