At a time when real estate prices are rising rapidly, buying a home has become a real challenge and a big burden for most Lebanese citizens.
Choosing any house is easy. Finding the dream home and being able to afford it is another matter. What happens when you do find the home of your dreams, but cannot finance its payments? Most banks offering housing loan programs require a high salary in order to grant the loan. In this respect, only a minority of the population is entitled to a loan.
Today Lebanese Canadian Bank SAL has teamed up with the Public Corporation for Housing (PCH) to grant loans to low and middle wage earners.
At the Lebanese Canadian Bank SAL, a special team of Customer Relationship Officers has been trained to assist you with your housing loan. As such, a financial specialist is ready to listen to your needs and offer you the solution best adapted to your particular situation. Together, you will decide on the amount to borrow and the terms of payments that suit you best.
You can apply for the PCH Program loan if you are:
Buying an existing home
Buying the home you are now renting
Important Information:
10% of the granted loan will be placed in the PCH account.
Repayments up to 1/3 of your salary.
You have to be at least 21 years old and have enjoyed Lebanese citizenship for 10 years or more.
Your total monthly income should not exceed 3 million Lebanese pounds.
You can repay your loan over a period of 20 years.
The loan is for residential homes only.
You have to live in the home you are buying throughout the entire duration of the loan period.
You may settle your monthly payments through cash or direct debit to your account at the Lebanese Canadian Bank SAL.
You will need to mortgage your home as a security for the loan.
You will need to insure your life and home, which we will arrange for you.
Your application will need to be jointly approved by Lebanese Canadian Bank SAL and the PCH.
Terms and Conditions:
How much can I borrow?
Before you decide to buy your home, you need to find out how much you can spend. The amount we can lend you depends on your family income and on the size of the house. We will lend you up to LBP 120 million, as long as the monthly payments do not exceed one third of your salary.
Your total income includes your main income and any other sources of income, including your spouse's income. The house’s area should not exceed 200 m2.
How long can I borrow for?
We will lend you for a period of up to 10 years. Our loan period is then matched by the PCH. So, if you apply for a ten-year loan period, you will actually be paying back your loan over a total period of 20 years.
What Are The Interest Rates and Other Charges?
We are currently charging a 6.62% interest rate fixed for the first two years (subject to review every two years). The interest rate applies to the amounts it has paid on your behalf, which is to be settled when you have repaid the capital.
There will also be a 1% flat commission fee charged once only on the initial amount. In addition, both property and life insurance policies will be issued and can be paid in advance or by monthly instalments (subject to interest).
You will be exempted from paying:
The fees required for legal documents.
Fiscal stamps.
House registration fees.
How is it all calculated?
If you apply for a 20 year loan, the payments will be as follows:
During the first ten years, you will be paying Lebanese Canadian Bank SAL the initial amount of the loan (plus insurance fees).
The PCH will be paying the interest on your behalf.
At the end of ten years, you will be repaying the PCH the interest it had settled on your behalf.
How Can I pay each month?
You can repay your mortgage either through cash or a direct debit to your current account. You could also opt for a salary domiciliation account at the Lebanese Canadian Bank SAL.
How much can I afford?
It is not enough to know how much you can borrow based on your salary alone. Everybody has different expenses each month. Knowing your monthly expenditure can give you an idea of the amount you can spare. This will help you decide how much you can borrow and how much you can repay without running out of money at the end of the month.
Who can benefit from the PCH Loan and the surface area of the apartment?
Any one that has enjoyed Lebanese Citizenship for at least 10 years or more.
Any one whose monthly salary does not exceed 2 X minimum salary of LL. 600.000 for an apartment with an area of 120 m2.
Any one whose monthly salary falls between LL.600.000 - 1,800,000 more than 2x minimum salary and does not exceed 6x minimum salary for an apartment with an area of 150 m2.
Any one whose monthly salary is between LL.1.800.001-3.000.000 more than 6x minimum salary and do not exceed 10 x minimum salary for an apartment size maximum 200 m2.
