Don’t we all dream of owning a house that is totally ours? Yet, sometimes we can’t afford paying a huge bulk of money all at once, which is why we go for house loans. What is that you ask? Read on and you will find out everything you need to learn about housing loan in Lebanon.
What is housing Loans/mortgage loans?
A housing loan, or a mortgage, is a deal between a person or organization that needs that loan and an organization or institution that lends money. This deal is secured by the house or the real estate property the borrower buys, so in case the borrower fails to pay the lender back, the property becomes owned by the lender.
On some level, it is like someone buying you the house and you paying them back in installments with some interest. This way the lender invests without the fear of not receiving back his money.
Why would you need a housing loan?
There are many reasons why people choose applying for a housing loan. Here are some of these reasons:
- Reduce your monthly payment
You have the chance to choose the best mortgage rates by having more flexibility regarding the time frame or the breakdown of your payment.
- Pay lower interest rates
House loans may have lower interest rates than regular house payments.
- Get a bulk of money at once
You may not have a big bulk all together, but when you get a loan, you pay all the money to the seller, then you deal with your loaner.
- Unite your debts
Instead of having credit card debts or more than one debt, combine them all into one loan
- Guarantee a regular, fixed mortgage rate
When you buy a house directly from a seller, you will be subject to interest change according to the market and real estate rates, but when you get a loan, the interest does not change.
What are the conditions of getting a housing loan in Lebanon?
Here are the requirements for getting a home loan Lebanon:
- You need to have a life insurance that covers the loan amount
- You must be a Lbeanese citizen
- You must have a natural disaster and fire insurance policy
- The monthly payment must not exceed one third of your salary
- Depending on the amount of debt you have, the loan is decided. You should limit your debts before you apply for a loan
- Your credit score, which determines how reliable you are at paying back your loan. The higher your score is, the better your chances are at getting a loan.
How do you choose the best housing loan for you?
When choosing a loan, there are a number of things to consider.
- One of the most important things is the repayment period; how many years seems reasonable for you or suits you? This period also bases the amount of your monthly payment.
- Another thing you need to consider is the mortgage loan rates of interest. You want to go with the lowest interest rate possible.
- Some banks or institutions require a downpayment, others do not, so you need to figure out which option is better for you. If you pay a down payment, you will lower your monthly payment. Yet some people can not afford the down payment, or prefer not to pay it.
- One of the most important things you need to make sure of is that you can actually afford the house and the monthly payment to avoid the risk of not being able to pay back.
What are the best institutions that provide housing loans in Lebanon?
One of the best institutions in Lebanon is the Banque De L’habitat Liban, as it is partly owned by the government, and it offers one of the best housing loans in lebanon in terms of options and facilities. Citizens are asked to pay 10% down payment, and they may pay throughout a period between 7 to 20 years. You also pay in Lebanese Pounds. BDL works with some banks like BLOM bank, and together they offer a subsidized loan, which helps you get to pay less.
Another very good option is Byblos Bank. They do not require a down payment, and the loan period can be up to 30 years, and the housing loan interest rate is relatively low: only 2.97%.
Bank Audi is also another very good option. They require a 25% down payment, and their interest rate is only 2.5%. They offer a maximum loan period of 25 years.
How do you calculate your home loan using a home loan calculator Lebanon?
You can basically use the housing loan calculator Lebanon to calculate your loan payment breakdown. What you will need to do is enter the loan amount, the loan period, the interest rate, and the down payment you paid or the percentage, depending on the website you are using.
You can finally know the total of your loan and exactly what you need to pay through Iskan loan calculator Lebanon. However, the interest rate usually depends on a number of factors like: the bank itself, the loan amount, the percentage that was paid as a down payment.