After home ownership in Lebanon has become a distant dream, especially for the youth, and amidst the country’s economic and financial collapse, the Housing Bank’s decision has sparked some hope, albeit slight. Following a pause of about three years, the Bank has decided to open applications for a housing loan of up to one billion LBP, with a duration of 30 years and an interest rate of 5%, or for home renovations of up to 400 million LBP at an interest rate of 4.99% for a period of 10 years, or for solar energy installations with a maximum limit ranging from 75 to 200 million LBP.
Starting from June 20, a new set of loans targeting low and middle-income individuals will be launched electronically. Applications will be submitted through an app, and "payments will begin 10 days after all applicants meet the required conditions," according to Antoine Habib, General Director of the Housing Bank, speaking to MTV.
It is important to outline the conditions required for loan approval, particularly for the housing purchase loan: the property must not exceed 120 square meters, should be located in villages, rural areas, or remote regions, the borrower must not own any other property, and the application should include proof of the family's monthly income, with a minimum family income of 6 million LBP and a maximum of 20 million LBP. Additionally, the borrower must be Lebanese for more than 10 years with a clean criminal record. Most importantly, any applicant must not have previously received a subsidized loan.
Regarding the number of beneficiaries, Habib stated, "We cannot determine the number of beneficiaries as we cannot predict how many will apply; it will depend on the amount of applications." He added, "We cannot cover all of Lebanon or provide loans to all Lebanese citizens, as our resources are limited; we rely on our own funds as well as Arab and European funds, and we are about to sign a memorandum of understanding with an Arab institution next week."
He explains, "The reason for excluding Beirut and its suburbs is that the bank's system stipulates so, and the definition of cities and villages is in accordance with the Ministry of Interior. The Housing Bank provides 80% of the property's value, and the individual must secure the remaining 20%."
However, a fundamental factor will affect the loan amount, particularly since it is denominated in Lebanese pounds—the fluctuating exchange rate of the dollar. Habib stated, "We are not concerned with the dollar's exchange rate, whether it rises or falls; we have defined the value in Lebanese pounds. Everyone can 'do the math' based on their village and the size of the house," he concluded.
Thus, the dream of many will come true, but... with conditions!
