LEBANON — After nearly eight years without housing loans, home financing is once again becoming an important issue in Lebanon. The country’s economic and housing crisis has made owning a home difficult for many Lebanese, especially young people.
The 2027 draft budget includes around LBP 6 trillion for the Public Housing Corporation. This could help bring the institution back into the housing finance sector and support people who want to buy a home.
However, the main question remains: how much money is available compared with the growing demand for housing loans?
At the same time, the Housing Bank is returning to the housing finance market after securing KD 50 million from the Arab Fund for Economic and Social Development, worth around $165 million.
1,200 Loans by August… But Demand Is Higher
The numbers show how strong the demand is. By August 2026, around $83 million of the available funding had been used, helping around 1,200 Lebanese families, both in Lebanon and abroad, obtain housing loans.
But demand is still higher than the available funding. In an exclusive interview with Enmaeya, Housing Bank Chairman Antoine Habib said many young people and low- and middle-income families are looking for ways to move from renting to owning their homes.
The problem is not that Lebanese people do not want to own homes. The bigger issue is whether they can afford both the property and the loan. After years of economic difficulties and higher property prices, getting a housing loan has become difficult, while rent continues to take a large part of household incomes.
Up to $100,000 to Buy or Build… $50,000 for Renovations
To respond to higher property and construction costs, the Housing Bank has increased the maximum loan for buying or building a home to $100,000. The previous limit of $50,000 had become less suitable for today's market.
For home renovations, the maximum loan is $50,000.
The interest rate was also reduced to 5.75% as of July 1, 2026. The move aims to make monthly loan payments more affordable for borrowers.
However, a lower interest rate alone is not enough. Habib said the bank still needs long-term funding at a low cost from Arab funds, international institutions and donors. This would help the bank offer loans at better rates in the future.
In simple terms, the issue is not only how much people can borrow. It is also about how much the bank has to pay to get the money it lends to citizens.
Young People Are at the Center of the Housing Crisis
Young Lebanese are among the groups most affected by the housing crisis. Many are now forced to choose between continuing to rent, delaying marriage or leaving the country in search of better financial opportunities.
The current housing loan programs mainly target low- and middle-income families. This makes them especially important for young people who may not have enough savings to buy a home on their own.
However, traditional housing loans do not work for everyone. Some people cannot afford the down payment, while others cannot borrow enough to cover the full cost of a property.
This is why the Housing Bank is also looking at a Rent-to-Own option. The idea would allow people to rent a home while gradually moving toward owning it.
The project is still being studied and prepared. Before it can start, the bank needs to finalize the legal, financial and real estate details, as well as how the properties will be priced and financed.
$165 Million… Is It Enough?
The $165 million secured by the Housing Bank is an important step, but it is unlikely to be enough to meet Lebanon's housing needs for the long term.
Around $83 million had already been used by August, benefiting 1,200 families. With demand continuing to grow, finding more funding will be essential for the housing loan program to continue and reach more people.
Habib said the Housing Bank is looking for new sources of funding from Arab funds, international institutions and donors. The aim is to increase the number of people who can benefit from the loans and keep the program running for a longer period.
Housing finance also works as a cycle. As borrowers repay their loans, the money can be used again to provide loans to new families. But this process takes time, which means the bank still needs additional funding to keep expanding the program.
The Housing Bank Cannot Solve the Crisis Alone
The Housing Bank can play an important role, but it cannot solve Lebanon's housing crisis on its own.
According to Habib, Lebanon needs a long-term national housing policy that brings together the government, the Housing Bank, commercial banks, Arab funds, international institutions and the real estate sector.
The country needs long-term funding at affordable rates, as well as a clear housing policy that goes beyond temporary programs.
The goal should not simply be to give people more loans. It should be to create a system that makes home ownership possible for Lebanese families, especially young people, without putting them under debt they cannot afford to repay.
Are Housing Loans Really Coming Back?
With loans of up to $100,000 for buying or building a home, $50,000 for renovations, an interest rate of 5.75%, and around $165 million in available funding, housing finance is making a stronger return than in recent years.
But bringing back housing loans does not mean that Lebanon's housing crisis is over.
The real test will be whether the country can secure more funding, lower the cost of borrowing and help more Lebanese families access home financing. This will also require a clear national housing policy that treats housing as a long-term economic and social issue.
For young Lebanese, whose ability to buy a home has fallen sharply, the return of housing loans could be an important first step. But on its own, it will not be enough to solve the housing crisis.
