Are you looking for a loan to buy, build, or renovate a house? Too many housing loans you are getting confused? Here is a short summary of the types of housing loans offered by banks in Lebanon in order to help you make a better choice! Banks in Lebanon usually provide housing loans for both expatriates and residents. The loans' purpose might be to buy, renovate or build a house. There are 3 types of housing loans in Lebanon:
- Iskan loans are loans granted by banks in collaboration with the Public Corporation for Housing which is owned by the government. In order to be eligible, you have to be a Lebanese citizen or resident with a monthly income varying between LL600,000 and LL6,750,000. The house you want to buy has be located at least 25 Kms far from another property that you and you can only buy a house which has a maximum area of 200 square meters. The maximum amount you can take is LBP 270 million and you can reimburse them over 30 years.
- BDL Subsidized loans are loans that are that are granted by banks and with interest rates made lower with the help of the Lebanese central bank. These loans usually cover up to 75% of the value of the house you want to buy if you are a Lebanese resident and 60% of the value of the house if you are an expatriate. Another good thing is that the maximum amount of such loans you can take is unlimited, however, you can only take them in Lebanese Pounds. You can reimburse a BDL subsidized loan over maximum 15 years and you start paying after 2 years.
- Banks Offers are the different housing loan packages offered by each bank. The criteria and conditions of such loans are very different from one bank to another. Some create special housing loans for different categories of people such as expats, doctors, army etc. Check out our housing loans page for more details about these bank offers.
In any case, for benefiting from any of these loans you have to mortgage the house you are buying which may incur certain fees that you have to pay. Want more details about each of these loans? How to apply to them? What are the documents needed? What are the advantages of one compared to another? We will be answering all these questions in coming articles!