2 Months ago I went to SGBL and they said they are giving now 12.5% (for the 5 years term). I had tiny regrets about missing the 15% chance. But I don't know about the ones that got 15%, are the banks still paying that or not?joe2k17 wroteHello Community,
Any idea what are the current bank interest on LBP and USD and which Banks are giving the best interests at the moment ? are they still giving 15% and 16% like before for converting USD to LBP?
BR//
Bank savings account interest rates
Another point/question worth mentioning:
Some people said that they got affected in their house loans (negatively). A friend told me he is now paying extra 250$/month on a house loan he took 4 years ago. Did this happen with any of you guys?
Some people said that they got affected in their house loans (negatively). A friend told me he is now paying extra 250$/month on a house loan he took 4 years ago. Did this happen with any of you guys?
I have iskan loan and none of that happened. Your friend must have a private bank loan or something.Guitaret wroteAnother point/question worth mentioning:
Some people said that they got affected in their house loans (negatively). A friend told me he is now paying extra 250$/month on a house loan he took 4 years ago. Did this happen with any of you guys?
I have a BDL subsidized housing loan since ~3 years and my monthly payment is still the same.
A couple of people i know had their monthly payment increased (iskan and BDL).
The loan's interest rate depends on the Lebanese Treasury Bills (LTB) rate. LTB rate got higher this year hence payment increased, you can check the value here: http://www.bdl.gov.lb/statistics/table.php?name=t5271-3
Depending on when you took the loan, your interest rate will get higher, its just a matter of time.
A couple of people i know had their monthly payment increased (iskan and BDL).
The loan's interest rate depends on the Lebanese Treasury Bills (LTB) rate. LTB rate got higher this year hence payment increased, you can check the value here: http://www.bdl.gov.lb/statistics/table.php?name=t5271-3
Depending on when you took the loan, your interest rate will get higher, its just a matter of time.
- Edited
sero wroteI have a BDL subsidized housing loan since ~3 years and my monthly payment is still the same.
A couple of people i know had their monthly payment increased (iskan and BDL).
The loan's interest rate depends on the Lebanese Treasury Bills (LTB) rate. LTB rate got higher this year hence payment increased, you can check the value here: http://www.bdl.gov.lb/statistics/table.php?name=t5271-3
Depending on when you took the loan, your interest rate will get higher, its just a matter of time.
Exactly. My bank called me few weeks ago. I have to pay extra $350 per month ( loan above $450k ).
The thing is, it doesn't matter when you took the loan, if it's a BDL subsidized, they will contact you soon. It just depends on the month you took it.
Every year, they recalculate ( not sure about the financial term for this ) the interest rates and charges. During the last 25 years, rates were going down on a yearly basis.
It's probably the first time that housing loan interest rates go up.
Guitaret wrote2 Months ago I went to SGBL and they said they are giving now 12.5% (for the 5 years term). I had tiny regrets about missing the 15% chance. But I don't know about the ones that got 15%, are the banks still paying that or not?joe2k17 wroteHello Community,
Any idea what are the current bank interest on LBP and USD and which Banks are giving the best interests at the moment ? are they still giving 15% and 16% like before for converting USD to LBP?
BR//
I know a bank that offered %17.5 interest rates on LBP for amounts > 500 m LBP. Since late January, no bank is allowed to offer more than 12% on LBP and 8% on USD ( according to my bank and to the rules set by BDL )
Drifting a bit off-topic but I need an advice from people who took a house loan.
I bought a property recently and I am almost there in completing its price in full (90%) but I did not take a loan from the bank yet: I paid all the cash I have & I am paying the remaining on monthly installments.
The thing is that I am currently cashless and as you know the house needs soo much work & money for it to be called home (refurb work, furniture, curtains, carpets, custom work, smart appliances, outside garden work, heating & cooling...). This is not a small sum.
My question: Since it is not mine completely yet, I still have a chance to take Iskan (when it is offered again). This is a 30 years loan (not to be taken lightly I know) but since it is a low interest one, I am able to finish the house to my liking and still have ~100k for an investment of my choice after that.
Friends are telling me that paying ~1k USD every month forever (or 30 years) will break my back as it did to theirs. They advised to only take a personal loan to cover the basics of the house and henceforward I can work it up in what remains from my salary each month. What I only like about this idea is the fact that the house will not be mortgaged and so I can sell it easier if I ever needed to, but I dislike the fact that the loan is of a very high interest (yes personal loans are crazy now: ~20%) and I won't be able to do the house properly: hire an architect, terrace, jacuzzi, security system, and all that jazz.
Please advise.
I bought a property recently and I am almost there in completing its price in full (90%) but I did not take a loan from the bank yet: I paid all the cash I have & I am paying the remaining on monthly installments.
The thing is that I am currently cashless and as you know the house needs soo much work & money for it to be called home (refurb work, furniture, curtains, carpets, custom work, smart appliances, outside garden work, heating & cooling...). This is not a small sum.
My question: Since it is not mine completely yet, I still have a chance to take Iskan (when it is offered again). This is a 30 years loan (not to be taken lightly I know) but since it is a low interest one, I am able to finish the house to my liking and still have ~100k for an investment of my choice after that.
Friends are telling me that paying ~1k USD every month forever (or 30 years) will break my back as it did to theirs. They advised to only take a personal loan to cover the basics of the house and henceforward I can work it up in what remains from my salary each month. What I only like about this idea is the fact that the house will not be mortgaged and so I can sell it easier if I ever needed to, but I dislike the fact that the loan is of a very high interest (yes personal loans are crazy now: ~20%) and I won't be able to do the house properly: hire an architect, terrace, jacuzzi, security system, and all that jazz.
Please advise.
- Edited
With Iskan you benefit from 2 things
1- free registration of the property (normally its 6% of the property's price)
2- low interest rate (compared to a personal loan)
Downside:
1- You pay a monthly installment for 30 years (~1k USD) .
Your friends are saying this is breaking their back. But what's the alternative? Rent an apartment forever?
In your shoes i would keep the cash and take an Iskan loan.
Cash is more powerful than property (land/apartment/store) these days (that's why interest rate on cash is high), especially in Lebanon.
But also keep in mind that Iskan is not available now and i don't think it will be any time in the near future
1- free registration of the property (normally its 6% of the property's price)
2- low interest rate (compared to a personal loan)
Downside:
1- You pay a monthly installment for 30 years (~1k USD) .
Your friends are saying this is breaking their back. But what's the alternative? Rent an apartment forever?
In your shoes i would keep the cash and take an Iskan loan.
Cash is more powerful than property (land/apartment/store) these days (that's why interest rate on cash is high), especially in Lebanon.
But also keep in mind that Iskan is not available now and i don't think it will be any time in the near future
Guitaret wroteDrifting a bit off-topic but I need an advice from people who took a house loan.
I bought a property recently and I am almost there in completing its price in full (90%) but I did not take a loan from the bank yet: I paid all the cash I have & I am paying the remaining on monthly installments.
The thing is that I am currently cashless and as you know the house needs soo much work & money for it to be called home (refurb work, furniture, curtains, carpets, custom work, smart appliances, outside garden work, heating & cooling...). This is not a small sum.
My question: Since it is not mine completely yet, I still have a chance to take Iskan (when it is offered again). This is a 30 years loan (not to be taken lightly I know) but since it is a low interest one, I am able to finish the house to my liking and still have ~100k for an investment of my choice after that.
Friends are telling me that paying ~1k USD every month forever (or 30 years) will break my back as it did to theirs. They advised to only take a personal loan to cover the basics of the house and henceforward I can work it up in what remains from my salary each month. What I only like about this idea is the fact that the house will not be mortgaged and so I can sell it easier if I ever needed to, but I dislike the fact that the loan is of a very high interest (yes personal loans are crazy now: ~20%) and I won't be able to do the house properly: hire an architect, terrace, jacuzzi, security system, and all that jazz.
Please advise.
If I understand your question correctly, you do not get the cash. It's the seller that takes the cash from the bank " وعد بالدفع ".
So I am not sure if you trust him enough but basically what you're telling him is to collect the remaining %10 from the housing loan and give it to you so you can pay him the remainder on a monthly basis.
This is covered, no worries about that:Kareem wrote If I understand your question correctly, you do not get the cash. It's the seller that takes the cash from the bank " وعد بالدفع ".
So I am not sure if you trust him enough but basically what you're telling him is to collect the remaining %10 from the housing loan and give it to you so you can pay him the remainder on a monthly basis.
The seller gets the cash and gives them back to me or at least the remaining (not so uncommon). Many people do that so they can finish up the house. And the amount I can take is whatever is allowed to me, not just the 10% and so this my question here. Lets say I am allowed 150k, knowing what it means to pay some hefty monthly amount for a long period of time Kareem, would you do it ? or stay cashless but without a loan and finish up the house each month (even if it took years)?
@sero I appreciate your feedback.
I can't really advise you as I know nothing about your plans. Loans are risky. Interest rate is fluctuating and you may end up paying much more than you thought.Guitaret wroteThis is covered, no worries about that:Kareem wrote If I understand your question correctly, you do not get the cash. It's the seller that takes the cash from the bank " وعد بالدفع ".
So I am not sure if you trust him enough but basically what you're telling him is to collect the remaining %10 from the housing loan and give it to you so you can pay him the remainder on a monthly basis.
The seller gets the cash and gives them back to me or at least the remaining (not so uncommon). Many people do that so they can finish up the house. And the amount I can take is whatever is allowed to me, not just the 10% and so this my question here. Lets say I am allowed 150k, knowing what it means to pay some hefty monthly amount for a long period of time Kareem, would you do it ? or stay cashless but without a loan and finish up the house each month (even if it took years)?
@sero I appreciate your feedback.
$150K means around $1100 -- $1200 USD per month up to 30 years. It includes the insurance fees which means around $400K.
If I were you, I wouldn't go for it. You never know what might happen in the future. Selling the property is very complicated when it's mortgaged. You won't be eligible for another loan ( car, personal etc.. ) if your income doesn't allow it.
You have 10 years to pay for the property registration so plenty of time but again, I don't know how old you are, when you're planning to move, and your future plans.
If you really have to go for a housing loan, make the duration as short as possible ( 7 years is probably OK). So it's not really the amount but the duration.
- Edited
@Guitaret:
Cashless is not a good option
A basic idea in the economy is that 100$ today is worth (almost always) more than 100$ in one year. It's called inflation. The earlier you get access to the money, the more value this money has. It is tempting to try to go your whole life without taking a loan, but mathematically speaking, you'd be missing out on good opportunities.
It depends on interest rates
You already mentioned it, interest rates are really high right now. It costs a lot to borrow money. Right now is not a good time to take a loan. Be on the lookout for signs that the interest rates are coming down.
It depends on other things as well
Your salary, your family situation, your lifestyle expenses, ... plenty of things to consider before getting a loan. But usually, bankers have a good way of helping you figure this out.
Cashless is not a good option
A basic idea in the economy is that 100$ today is worth (almost always) more than 100$ in one year. It's called inflation. The earlier you get access to the money, the more value this money has. It is tempting to try to go your whole life without taking a loan, but mathematically speaking, you'd be missing out on good opportunities.
It depends on interest rates
You already mentioned it, interest rates are really high right now. It costs a lot to borrow money. Right now is not a good time to take a loan. Be on the lookout for signs that the interest rates are coming down.
It depends on other things as well
Your salary, your family situation, your lifestyle expenses, ... plenty of things to consider before getting a loan. But usually, bankers have a good way of helping you figure this out.
@Guitaret:
Taking a loan right now is not the best option.
Since you are taking the loan to furnish the house, why not ask check for payment facilities within the stores, some places offer 0% interest up to certain period, and with the current market status most of the places will do their best to sell anything.
Taking a loan right now is not the best option.
Since you are taking the loan to furnish the house, why not ask check for payment facilities within the stores, some places offer 0% interest up to certain period, and with the current market status most of the places will do their best to sell anything.