Pakistan Mortgage Refinance Company (PMRC) was set up as a Mortgage Liquidity Facility by the State Bank of Pakistan to address the long-term funding constraint in the banking sector, which was hindering the growth of the primary mortgage market. PMRC is serving as a secure source of long-term funding at attractive rates and at the same time ensuring sound lending habits amongst the primary mortgage lenders (PMLs). Its thrust is three-fold: help reduce maturity mismatch risk for PMLs, increase the availability of fixed rate mortgages and increase the maturity structure of the mortgage loans. This in turn would not only help improve the affordability of mortgages but also increase the number of qualifying borrowers. The issuance of bonds and sukuks is playing an integral role in the development of capital markets and housing finance. PMRC envisions further expansion of the primary mortgage market, which will consequently lead to the ultimate goal – a more widespread home ownership.
PMRC is playing a key role in providing funding to both conventional and Islamic PMLs and it is endeavoring to encourage and collaborate with an increasing number of PMLs to provide more housing loans in Pakistan.
As the Company’s principal source of funding will be from the local capital market; another important objective of the Company is continuing to lead the development of the local capital markets.