Easy Home is Pakistan’s first totally Shariah-compliant Home Finance facility! One that is comprehensive, affordable, and totally hassle-free. For at Meezan Bank, we are committed to meeting our customers’ needs, in a truly Shariah-compliant manner coupled with dedicated service excellence. Frequently Asked Questions Why is Halal home finance so important to you? Owning your own home is one of life’s most important achievements. It represents your security, stability, and is a great blessing in itself. It provides that all-important safety and comfort for you and your loved ones. However, in today's often unpredictable and costly environment, saving the required money can take a lifetime in itself. Rising property prices, taxes, inflation, currency devaluation… it’s all a very hard bargain. On the other hand, owning your own home and paying an easy installment, which takes you step by step towards complete ownership, is so much better than paying rent which ultimately only adds to your expenses. Added to that is your desire to stay away from interest based financing and be totally riba-free, thus achie-ving that complete inner satisfaction and peace of mind. Why not have the best of both worlds? Isn't that what you are working so hard for anyway? Islamic Financing on a Diminishing Musharakah basis With Easy Home you participate with Meezan Bank in a joint ownership of your property, where the Bank will provide a certain amount of financing (usually up to 80%). You agree to a monthly payment to the bank of which a component is for the use of the home, and another for your equity share. In fact, the total monthly payment is reduced regularly as your share in the property grows. When you have made the full investment, which had been agreed upon, you become the sole owner with a free and clear title to the property. What specifically makes Easy Home Shariah compliant? As a Diminishing Musharakah it conforms to Shariah laws specifically related to financing, ownership and trade. Taking ownership through a partnership and then transferring complete ownership to the consumer instead of simply lending money is the major factor that makes our product Shariah compliant. The nature of the contract is a co-ownership and not a loan because the transaction is not based on the lending and borrowing of money but on the joint ownership of an asset. Meezan Bank shares in the cost of the asset being purchased, for example in the case of buying a home. In conventional mortgages the interest charged is a mark-up on the money lent. The profit charged by Meezan Bank is the utilization payment for your use of our share throughout the life of the contract. Your payments to Meezan Bank are completely riba-free. Why is the profit margin charged by Meezan Bank correlated to the conventional mortgage market trends? At Meezan Bank, the profit margin is directly correlated to market trends to provide a competitive product to our customers. Shariah allows the use of any conventional market factor as a benchmark to determine the profit rate of a particular product. The mere fact that the applied profit rate of our product is based on similar factors used in determining the applied rate of interest of a mortgage does not render the transaction or the contract invalid from the Shariah perspective, and neither does it make the transaction an interest-bearing one. On the other hand, it is the underlying structure of the product that determines its Shariah compliance. Easy Home Financing in DHA Creek Vista Creek Vista is a mega residential project of DHA comprising of high rise complexes equipped with all modern day facilities. Meezan Bank proudly announces to be the First Islamic Bank to extend Home Financing for purchase of apartments in Creek Vista.     Payment Plan  UMI Model Easy Home is structured under the concept of diminishing Musharakah where Meezan Bank and Customer enter into a Musharakah Agreement whereby both the parties provide their investments to be utilized for the purposes of purchase/construct/renovate the property. The Joint ownership is created in the property between Bank & customer by virtue of the Musharakah agreement. (This is based on the principle of Shirkat ul Milk) Bank’s share is divided into units and is given to the client on rent and Client promises to purchase Bank’s share (units) over the tenure of transaction Client purchases the units every month and will eventually become the owner of the property. Rental amount is adjusted according to the bank’s share (units) remaining in the property. In UMI , the Musharakah unit price remains constant through out the financing period. Step-up Model The Step-up Payment plan is introduced for customers who intend to avail maximum financing facility with lower installments. The step up model is based on Shariah Compliant structure of Diminishing Musharakah. In this model, the bank’s share s divided into more Musharakah units and in the initial half of the facility tenure, the customer purchases one Musharakah unit from bank every month and in the later half of the facility tenure, the customer purchases two Musharakah units from bank every month. Thus the monthly installment during initial years is comparatively lower which is easily affordable. This model is a Shariah Compliant Alternative available to the customers who wish to avail maximum financing facility from bank. Maximum Financing Tenure Now you can avail financing facility for maximum up to 25 years period. (Only for Salaried / SEP Customers) Buy, Build, Renovate, or Replace! Buying a Home is Easy & Halal! Choose it and be ready to move in. Meezan Bank will finance up to maximum of 70%(Salaried, SEP, NRP) of the appraised value of your new home or up to a value of Rs. 40 million,  and a maximum of 60%(Businessman) up to a value of Rs 5 Million with a financing tenor of up to 20 years. Click here for details Building a home is Easy & Halal! For that special home you want to build yourself. Meezan Bank provides financing up to 70%(salaried, SEP, and NRP) of the appraised value or Rs. 40 million, and a maximum of 60%(Businessman) up to a value of Rs 5 Million for a tenor of up to 20 years. Click here for details Renovating your home is Easy & Halal! Making your home even better or just repairing it. Meezan Bank helps with financing up to 30% and a financing tenor of up to 15 years. Click here for details Replacing your existing Mortgage is Easy & Halal! The wait is over. Now continue to enjoy your home but with the added satisfaction and peace of mind you have always wanted. Meezan Bank will help you switch your existing liability over to us and let you enjoy the benefits of Halal and totally flexible financing. Financing up to Rs. 40 million(Salaried, SEP, NRP) and Rs 5 million(Businessman) and a tenor of up to 20 years. Click here for details Special Benefits of Easy Home Flexible Financing Tailored to Support You High financing amounts Adequate financing against property value Flexibility to make partial prepayments Minimal processing charges Affordable and competitive installment amounts with a regular reducing monthly rental Rate relaxtion for select MNCs & LCGs Quick Processing Time Absolutely hassle-free. Quick turn-around-times, with no burdensome complexity or excess paper work. It is simple, halal, and easy! Click here for details Even the eligibility is Easy! We at Meezan Bank, as prescribed by Islamic Shariah, seek to guarantee equal access to financing for all qualified applicants, while ensuring that the qualification process is bias-free. Click here for details Non Resident Pakistanis Non Resident Pakistanis can apply with peace of mind for the fastest processing of their case. Special Offer for Chartered Accountants Qualified Chartered Accountants and Corporate CFOs can avail discounted rates and flexible repayment option with no pre-payment charges on early payment either partially or full. Special Offer for Easy Replacement Cases Why paying high installment on high rate? Transfer your existing home finance facility to Meezan Bank and avail attractive profit rate with flexible payment options. No pre-payment charges on early payment either partially or full. Profit Rates For Salaried Customers including SEP’s, NRP’s & Merchant Navy: Fixed – 1st Year : K * + 3.00 % p.a Annual Re-pricing : K ** + 3.00 % p.a. (Floor 12.00% p.a. and Cap 30% p.a.) For Businessman Customers: Fixed – 1st Year : K * + 4.00 % p.a Annual Re-pricing : K ** + 4.00 % p.a. (Floor 12.00% p.a. and Cap 30% p.a.) * For first year Fixed Rate, “K” denotes KIBOR (Karachi Inter Bank Offer Rate), announced on 1st working day of each calendar month. ** For annual revision, “K” denotes 90 days average of 12-month KIBOR (Karachi Inter Bank Offer Rate), announced for each calendar quarter by the Bank. Additional Unit Purchase Additional units will be revalued at 3%. Revision of Profit Rates Profit rates will be revised annually on Account Anniversary. Repayment Frequency and Mode Monthly installments, through Direct Debit of customers account maintained at Meezan Bank Ltd in any branch. Come and take the step towards Riba-Free financing for your home, made easy with Meezan Bank's Easy Home! Download an Application Form for Easy Home or simply walk-in to a Meezan Bank branch. For further information make an appointment with our officer or call our 24/7 Call Center for details