Procedures for getting a housing loan in Lebanon

on October 17, 2014

There are two types of housing loans that we will be talking about that are provided by the Banks in Lebanon. The first loan is the BDL subsidized loans which are granted by banks and with interest rates made lower with the help of the Lebanese central bank while the second type of loans are bank offers which are the different housing loan packages offered by each bank.

Conditions and guarantees required for housing loans:

Monthly payment must not exceed 1/3 of the monthly income.
A life insurance covering the outstanding loan amount.
A fire and natural disaster insurance policy.
1st degree mortgage on the residence
Applicant must be a Lebanese citizen
Applicants shouldn’t be retired when loan period ends

Housing loans comparison between different bank

BDL subsidized loans:

Repayment Period: 7 to 20 years

Currency: Lebanese Pounds

Grace Period: 6 months

Maximum Loan Amount: 800 Million LBP

Interest Rate: 40% of Treasury Bills (1 year) + 3.3% (variable interest rate depending on the bank), currently 5.44%

Down Payment

· Residents: 10% of the loan amount.

· Expatriates: 20% of the loan amount

Bank offers:

Each Bank has a different type of housing loans. We will be stating some of the offers that we know from various banks.

Blom Bank: Darati housing loan

Repayment: Up to 25 years (possibility to add 5 years for closing 30% of the loan)

Currency: US Dollars

Minimum loan amount: USD 15,000

Maximum loan amount: No preset maximum

Interest Rate: Cost of funds + 3.5% (variable interest rate) -currently 6.48%

Down payment: 25% of the loan amount.

Pre-Approval: You can have a pre-approval from the bank within 48 hours of application

Bank Audi: Home Loan

Repayment: Up to 25 years for Residents and 20 years for expatriates

Currency: US Dollars

Minimum loan amount: USD 75,000

Maximum loan amount: No preset maximum

Interest Rate: Cost of funds + 3.5% (variable interest rate) -currently 6.48%

Down payment: 25% of the loan amount.

Pre-Approval: You can have a pre-approval from the bank within 48 hours of application

BLC Deluxe Plan:

Repayment: Up to 30 years

Currency: US Dollars

Loan Amount: Unlimited

Interest Rate: Cost of funds + 4.5% (variable interest rate) currently 7.48%

Down payment: 25% of the loan amount/ 30% if a non resident lebanese

Papers required

The papers that are required are the same for both and are as follows:

For employees:

Copy of passport or Identity Card
Proof of income: a recent employment certificate confirming the date of employment, position held, salary, and NSSF number (if available) or certificate of salary with a copy of the last payroll slip
Proof of residence: certificate of residence or copy of electricity or phone bill

For self-employed:

Copy of passport or Identity Card
Statement of account for the last 6 months
Declaration of income for the last 2 years
Copy of the company’s commercial circular
Documents proving the place of work (certificate of Commercial Register, etc.)
Copy of syndicate membership card (if available)
صورة عن رخصة البنا
نسخة عن خريطة الافراز وﺇرفاق وتخطيط
عقد البيع مع الوصولات
براءة ذمة مالية وبلدية
نظام الملكية المشتركة من كاتب العدل
صورة عن سند ملكية للعقار
ﺇفادة عقارية شاملة للعقار المفرز وللمقسم رقم واحد
صورة عن رخصة الاسكان مصدقة من البلدية أو من المرجع الصادرة عنه، أو ﺇفادة ﺇنجاز البناء ﺇذا كان المسكن منجز قبل آذار ١٩٦٤