Document background
The Mortgage Facility Letter is a fundamental document in Pakistan's banking sector, used when a financial institution approves a mortgage loan for either residential or commercial property purposes. It represents the bank's formal offer of financing and becomes a binding agreement once accepted by the borrower. The document must comply with Pakistani banking regulations, particularly those set by the State Bank of Pakistan, and includes essential information such as facility amount, interest rates, repayment terms, security arrangements, and conditions precedent. This letter is crucial in the mortgage lending process as it establishes the legal and financial framework of the lending relationship, protecting both the lender's and borrower's interests while ensuring regulatory compliance.
