Banque de l’Habitat: A New Housing Loan Opportunity for Lebanese Residents and Expats

Introduction

In a period where access to real estate financing in Lebanon remains limited, Banque de l’Habitat S.A.L. has reintroduced a structured housing loan program denominated in Fresh USD — an essential step toward revitalizing the local property market.
This initiative aims to provide long-term mortgage solutions for Lebanese citizens and expatriates seeking to purchase, build, or renovate a primary residence, with additional support for installing solar and wastewater systems.

For many Lebanese families and expatriates, this loan represents one of the few viable, regulated, and transparent financing options available today, backed by clear eligibility and repayment terms.

1. Overview of the Banque de l’Habitat Loan

Banque de l’Habitat offers three main financing categories:

• Purchase or Construction Loan: up to USD 100,000
• Renovation Loan: up to USD 50,000
• Optional Add-ons: financing for solar energy and wastewater treatment systems

All loans are issued in Fresh USD, with repayment periods extending up to 20 years and an annual interest rate of 6% (6.35% APR excluding insurance). Payments are made in cash, and the disbursement is directly transferred to the seller once ownership has been legally transferred to the borrower.

2. Eligibility Criteria: Who Can Apply

The program is open to both residents and expatriates of Lebanese nationality, subject to the following key conditions:

• Citizenship & Legal Status: Applicants must hold Lebanese nationality for at least 10 years, have full legal capacity, and maintain a clean judicial record.
• Credit & Financial Standing: The borrower must have a clear credit history, free from blacklisting within the past 10 years.
• Income Requirements:
  • Household net income between USD 2,500 and USD 5,000 per month
  • Documented, regular income supported by official employment certificates or “Fresh USD” bank statements
• Employment Duration: A minimum of two years in the labor market prior to application.
• Age Limits:
  • Employees: up to 64 years old by loan maturity
  • Self-employed / Professionals: up to 70 years old (minimum 7-year loan term)
• Family & Property Criteria:
  • The financed property must serve family housing purposes only
  • Maximum property area: 150 m²
  • Existing homeowners may apply if the new property is 25 km or more from the current residence

Married couples and their dependents are considered as a single household unit for eligibility purposes.

3. Loan Conditions and Structure

Banque de l’Habitat’s lending framework prioritizes financial prudence and loan sustainability:

• Maximum Loan-to-Value (LTV): 80% of the bank’s valuation guarantee
• Minimum loan amount: USD 20,000
• Tenor: 7 to 20 years
• Grace period: 3 months from contract signature
• Repayment Cap:
  • Total financial obligations must not exceed 45% of household income
  • Loan installment must not exceed 33% of monthly income

Early repayment is restricted for the first 7 years, after which borrowers may prepay subject to a penalty on the prepaid amount.

Two insurance policies are mandatory:

1. Life Insurance (monthly premium in Fresh USD)
2. Home Insurance (annual premium covering fire, perils, and third-party liability)
   Both must be issued by insurers accredited by the bank.

4. Special Conditions for Residents and Expats

For Residents

Residents must demonstrate stable income and provide supporting documentation such as employment certificates, salary slips, or tax declarations. Their property must be located in Lebanon and used as a primary residence.

For Expatriates

Expats can also apply, provided their income and banking activity are verifiable in “Fresh USD”. Housing rental charges and average living costs abroad will be considered when assessing repayment capacity. This inclusion offers a practical path for Lebanese abroad to secure long-term housing or invest back home.

5. Practical Implications for the Market

This initiative marks a positive structural move for Lebanon’s real estate sector.
By enabling middle-income households to access long-term Fresh USD financing, it encourages transaction activity in the small-to-medium housing segment (below 150 m²), stabilizes market liquidity, and enhances the appeal of local real estate as a family-oriented investment.

Furthermore, the bank’s inclusion of solar and wastewater system financing aligns with the growing demand for energy-independent homes, a crucial factor amid Lebanon’s ongoing infrastructure challenges.

Reference:
More details are available on the official Banque de l’Habitat website:
https://www.banque-habitat.com.lb/en