A good time to borrow

ENAR

Home loans account for more than a quarter of local banks’ private sector lending. This is in large part thanks to subsidized loans from Banque du Liban (BDL), Lebanon’s central bank,  and loans from the Public Corporation for Housing (PCH), which are offered through local banks to lower-middle and low-income home buyers. A surge in home loans in recent years has prompted banks to explore untapped areas in the home buyers’ market, offering loans in US dollars with attractive terms to those buying second or third homes, luxurious and expensive units, seaside or mountain chalets, and even land to build on or property abroad—none of which are covered by BDL subsidized loans or PCH loans. Through billboard, radio, and TV ads, banks try to make a case for their home loan products, touting better terms than their competitors, including longer repayment periods, a longer grace period, more competitive interest rates,