The Public Corporation for Housing (PCH) provides long-term home loans in LBP, known as Iskan loans. The loan could cover: construction of a house, renovation of an apartment, or acquisition of a home. The allowed loan period ranges between a minimum of 10 years and a maximum of 30 years for buying apartments. The chosen period is evenly split into two phases:
- Phase 1 where you pay the principal loan amount, excluding the interest, to your bank via equal monthly installments.
- Phase 2 where you pay the interest for the Public Corporation for Housing.
The interest rate is fixed for 2 years and reviewed according to fluctuations in the rate (of the 2-year Treasury Bill in LBP) plus 3.5%. Currently, the interest rate on a PCH-Iskan loan is 4.67%. Let’s say your loan is 270,000,000 L.L, the total summed regressive interest rate would equal 105,000,000 L.L minus the 10% down payment plus the change in treasury bill rate, which is modified every two years.The maximum allowed loan amount is 270,000,000 L.L for PCH-Iskan loans and the minimum down payment usually ranges between 10% and 20% of the loan amount (depending on the bank policy). Accordingly, the property will be mortgaged as collateral. The two main benefits of the Iskan loan are:
- A lower interest rate compared to all other kinds of housing loans.
- It is exempted from registration (flat 5.7%), mortgage (flat 1.1%), and stamp fees.
The bank requires a 1% file fee. Life insurance and fire insurance covering the plot are usually included in this loan.
Conditions and Requirements:
- The beneficiary should be a Lebanese citizen for at least 10 years.
- Employees in the public and private sector, self-employed workers, and owners are all eligible to apply for this loan.
- Applicant must be above 21 years old upon submission and under 64 years old by the end of the loan period, and he/she is allowed to benefit only once from this loan program.
- Monthly family income must be greater than 675,000 L.L and less than 6,750,000 L.L in order to be eligible to apply.
- The purchased house area must be maximum 200 square meters and it should be at least 25 km far from other properties owned by the beneficiary.
- The loan amount shouldn’t exceed 90% of the residence value and the monthly installments shouldn’t exceed a third of the family’s monthly income.