Document background
The Mortgage Letter from Bank is a crucial document in Pakistani property financing that initiates the formal mortgage relationship between a bank and borrower. It is typically issued after the bank's initial approval of a mortgage application and serves as the official offer of financing. The letter comprehensively details the terms under which the bank is willing to provide the mortgage, including loan amount, interest/profit rates, tenure, and security requirements. Subject to Pakistani banking regulations and State Bank of Pakistan guidelines, this document must comply with both federal and provincial laws governing banking and property transactions. The letter can be issued for both conventional and Islamic mortgage products, with appropriate modifications to reflect Shariah-compliant terms where applicable. It forms part of the larger mortgage documentation suite and is typically followed by formal mortgage deeds and security documents once the offer is accepted.
