How to finance your house

on September 25, 2014

First thing to consider before buying a house is whether you are financially capable of buying and investing in a house, and in Lebanon it is becoming more difficult as the prices are inflating every year, however The Bank sector was able to help many people achieve their dreams and buy the house they wanted.

In Lebanon there are many different types of housing loans. Banks usually offer loans for people living in Lebanon as well Lebanese living abroad and these types of loans vary and can be divided to three types:

Iskan loans:  loans that are provided by banks in collaboration with the Public Corporation of Houses which is owned by the government. In order for a person to be eligible to apply for an Iskan loan, he/she must be Lebanese or a resident in Lebanon with a monthly income between USD 400 and USD 4,500, However if you have another property near the house that you want to buy then you can’t apply as the distance between a property that you own or renting and the house that you want to buy should be more than 25 km, which means that if you are renting in Beirut and want to buy a house in Beirut, you should leave the rent house in order to buy. You can buy a house with a maximum area of 200 m2 and the maximum amount you can take is USD 180,000 for a period of 30 years.

BDL subsidized loans: Loans granted by Banks with lower interest rates with the help of the Lebanese Central bank.  IF you are living in Lebanon then these loans can cover up to 75% of the value of the house, and if you are Lebanese living abroad then 60% of the amount of the house is covered by these types of loans as you need to have 40% of the amount of the house.  Loans are unlimited and rely on your monthly salary, the more you earn the more you can take, but the amount is always in Lebanese pounds and for a period of 15 years not more and paying for this loan starts after 2 years.

Bank offers: Each bank has different offers and these offers can vary from one bank to another. There are loans that are created for different people depending on their job and conditions. Each bank has a housing loan page on the website by which you can read about the different rates and compare bank to see which suits you best and which can provide you with what you need.