Effect of Iskan interest rate's reduction

A lot of people have asked us about the effect of the interest rate reduction to 3%. Let's assume you're buying an apartment for $200,000. How many Lebanese have 20% or $40,000 down payment saved? So clearly, they have to borrow that as well. The mortgage payment on $200,000 for 30 years at 3% is $843 per month. Of course, you also have to add the building common charges, let's call them $100 per month and life insurance on the loan (which is usually mandatory), let's call that $67 per month. So your total monthly payment is now $1000 per month. The per capita income in this country is $587 per month and dropping since 2010 (see enclosure). Let's assume a working couple, so that's a combined salary of $1,174 per month. That means the monthly payment of a typical Lebanese family would take up 85% of their income, leaving them $174 per month to eat, pay their kids' tuition, buy their car, pay for gasoline, and occasionally go out.


ٍSource: Real Estate in Lebanon