The Council of Ministers approved on June 16, 2025 the increase of the ceiling on housing loans extended through Banque de l'Habitat sal from $50,000 to $100,000. It said that it granted the approval following the request of the Council for Development and Reconstruction to raise the ceiling of housing loans for a single beneficiary, as part of Phase II of the Housing Project that the Kuwait-based Arab Fund for Economic and Social Development (AFESD) is funding.  Banque de l'Habitat announced that the new long-term credit facility in ''fresh'' US dollars allows borrowers to purchase, build or renovate a housing unit, as well as to install a solar system and a wastewater treatment station as part of the same loan.  Further, the bank said it will extend housing loans up to $100,000, depending on the income of the household or the individual buyer, with a loan ceiling equivalent to maximum 80% of the bank's guarantee. It indicated that the terms of the credit facility stipulate that the loan will carry an interest rate of 6% per year that can be subject to change, will have a grace period of three months, and will have a maturity of seven to 20 years.  In addition, it noted that the construction loans will amount to up to $100,000, depending on the income of the household or the individual borrower, with a loan ceiling equivalent to 80% of the bank's guarantee. It said that the loan will have a maturity of 7 to 18 years, a grace period of up to 24 months, and will carry an annual interest rate of 6% that can be amended.  Also, it pointed out that renovation loans will be up to $100,000, depending on the income of the household or the individual borrower.  It indicated that the loan will have a maturity of 7 to 10 years, a grace period of up to 12 months, and will carry an annual interest rate of 6% that can be modified.  Further, it stated that the monthly loan repayments for any of the loans should not exceed 45% of the monthly net income of the household or the individual buyer and that the monthly loan installments cannot exceed 33% of the borrower or borrowers' monthly net income. It said that applicants should be in the labor market for at least two years prior to the date of submitting the application, should have regularincome based on an official employment certificate, and regular bank statements in ''fresh'' US dollars or any other proof of income. It pointed out that all the banks will take into consideration the applicant's financial obligations and liabilities in order to determine his/her monthly net income when calculating the loan amount. It added that the average cost of basic living expenses, transportation, fuel or diesel costs, school and/or university tuition and the housing rental charges if the applicant is a non-resident, will be taken into consideration.  It said that it will disburse the loan amount in cash in US dollars directly to the borrower when the latter provides the bank with the original property title deed and the first-degree mortgage certificate, which covers the principal balance of the loan and the accrued interest payments. It added that borrowers must repay the loan instalments in "fresh" US dollars.  In addition, the bank stipulated that the surface area of the purchased housing unit must not exceed 150 square meters, that it should be exclusively used for family housing, that the borrower must not own more than 1,800 shares in a built property across the Lebanese territory, that the borrower cannot use the loan to repay a previous debt or arrears, and that the borrower must have a clean credit history in the past 10 years and a clean judiciary record. Also, it said that, in case the borrower owns an apartment, he/she can benefit from a housing loan on condition that the distance between the old and the new apartment subject of the loan is not less than 25 km. It stated that the borrower can be granted a new housing loan if he/she previously benefited from a housing loan that was fully settled and at least two years have passed since its closure.  Banque de l'Habitat is a Lebanese joint-stock company that provides loans in Lebanese pounds to individuals, especially those with low incomes, in order to buy, build, renovate or enlarge a residence. T (ICE BEIRUT)

Fonte notizia: Byblos Bank, June 16 - 21, 2025