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Should I wait for a 3.5% PCH loan or take the BDH loan now?

5 min read7 sourcesReviewed by Tatyana Alwan, lawyer, 18 Oct 2026
On this page
  1. Key facts
  2. What each option is in October 2026
  3. What 3.5% would save, and what is still unknown
  4. Taking BDH now and switching later
  5. How to weigh the choice
  6. It depends on
  7. Common questions
  8. Sources

Short answer

It depends on how long you can wait. As of October 2026, BDH lends at 5.75% a year (APR 6.33%)[1,2,3]. The 3.5% PCH loan is only a request in the draft 2027 budget[2], sent to Cabinet on 31 August 2026 and still awaiting Cabinet and Parliament approval. No start date is published, and BDH bars early repayment for seven years unless it agrees[1,4].

Also asked as: “Is it better to wait for the PCH 3.5% loan or take a BDH loan now?” · “PCH 3.5% loan or BDH 5.75% loan?” · “When will the 3.5% housing loan start in Lebanon?” · “Can I switch from a BDH loan to a PCH loan later?”

The PCH restart is still only a proposal in the draft 2027 budget, which Cabinet and Parliament have yet to approve[2]. This page covers what was published up to 17 October 2026.

Key facts

BDH rate now
5.75% a year (APR 6.33%)[1,2,3], as of October 2026
BDH rate in its February 2026 terms
6%, fixed for the first year only[4]
PCH proposal
USD 100 million requested, at 3.5%[2], as of September 2026
Where the PCH plan stands
Draft 2027 budget, sent to Cabinet on 31 August 2026[2]
PCH start date
Not published
BDH early repayment
no early repayment before 7 years[1,4] unless the bank agrees
A second BDH loan
Only 2 years after the previous loan is settled[1,4]
Who they are
PCH: state body; BDH: 80% private, 20% state[2]

What each option is in October 2026

PCH and BDH are different kinds of institution. The Public Corporation for Housing (PCH) is fully state-run and subsidises loans that commercial banks write, while Banque de l'Habitat (BDH) is a bank that lends itself[2]. PCH stopped taking applications when the crisis hit: Enterprise dates that to 2019, while LCPS dates the end of subsidised housing loans to 2018. More on the difference in PCH and BDH loans compared.

BDHPCH at 3.5%
StatusTaking applications on its online platform[1,5,6]A request in the draft 2027 budget[2]
Rate5.75% a year (APR 6.33%)[1,2,3], subject to amendment3.5% proposed[2]
Loan sizeup to USD 100,000 (minimum USD 20,000)[1,4]Not published
Term7 to 20 years[1,4]Not published
Who can borrowLebanese citizenship for at least 10 years[1,4], family income of USD 2,500 to 5,000 a month (family net income)[1,4,6] for the full USD 100,000 loanNot published
Start dateOpen nowNot published

BDH lends to residents and to Lebanese living abroad[1,4,6]. If you live outside Lebanon, see BDH loans for expats for how income is proved.

What 3.5% would save, and what is still unknown

The proposed PCH rate is 2.25 points below BDH's 5.75%[2]. For scale, BDH's own example puts a USD 100,000 loan over 20 years at 6% at USD 724 a month (USD 785 if the rate rises 1 point)[4]. BDH has published no example at 5.75%. We cannot give a PCH figure, because no PCH term, ceiling or fee has been published. For the BDH side, see the monthly payment on a BDH loan.

Timing is the bigger unknown. The draft budget still needs Cabinet review and a vote in Parliament, and no source says what happens to the PCH plan if the budget is not passed[2]. PCH's loans have been written by commercial banks, and as of autumn 2026 the press reports that those banks are still not writing home mortgages[2,7]. No source says which banks would write the new PCH loans. Some sources give a smaller funding figure than USD 100 million, and we could not confirm which is right. Follow the latest in when PCH will restart loans.

Taking BDH now and switching later

Switching would be slow. A BDH borrower cannot repay early, fully or partly, before seven years from signing unless the bank agrees, and after that each prepayment carries a penalty fee whose size BDH does not publish[1,4]. BDH also allows one loan per borrower, with a new one possible only 2 years after the previous loan is settled.

BDH, PCH and every source we read are silent on whether a BDH loan would stop you from getting a PCH loan later. Ask PCH directly before you count on doing both.

BDH's rate can move too. Its February 2026 terms fixed the rate for the first year only[4], and no source says whether the 5.75% rate is fixed for longer. As of September 2026 BDH was negotiating new credit lines with the Qatar Fund for Development and the Abu Dhabi Fund for Development, with no terms or dates published[2].

How to weigh the choice

  1. Check that you qualify for BDH. You need Lebanese citizenship for at least 10 years[1,4], a family income of USD 2,500 to 5,000 a month (family net income)[1,4,6] for the full loan, and a home of 150 m² at most. The full list is in BDH loan conditions.
  2. Ask BDH for its current Key Fact Statement. BDH takes applications on its online platform, open 9:00 to 13:00 on working days[1,5,6]. Ask how long the 5.75% rate is fixed and what the early-repayment penalty is. BDH serves customers directly and works through no brokers[1,5], so do not pay anyone to "get" you a loan.
  3. Ask PCH two questions in writing. When applications will open, and whether an existing BDH loan would affect your eligibility. Our sources publish no contact route for PCH, so ask at its offices and keep the written answer.
  4. Follow the 2027 budget. Until Cabinet and Parliament approve it, the 3.5% loan stays a proposal[2].
  5. Put a price on waiting. Add up what waiting costs you in rent, or in a home you might lose to another buyer. Set that against what the 2.25-point rate gap would save you[2].

It depends on

  • Whether BDH will lend to you at all. Foreigners and anyone who has held Lebanese citizenship for under 10 years are excluded[1,4]. If you cannot borrow, see paying without a mortgage.
  • How soon you need to buy. If you can wait with no date in sight, the PCH rate may be worth it. If not, BDH is the only published offer. No source gives a PCH start date.
  • The home itself. BDH pays the seller only after the title is in your name[1,4], and the home must be your family's home. Ask BDH whether your property qualifies.
  • What you already own. BDH lends to an existing owner only if the new home is at least 25 km from the home you own[1,4].
  • PCH's final rules. Its ceiling, term and eligibility are not published. Only PCH can tell you, once the budget passes.

Common questions

When will PCH start giving 3.5% housing loans again?

No date is published. As of September 2026 the 3.5% loans were a request in the draft 2027 budget, which was sent to Cabinet on 31 August 2026 and still needs Parliament's vote[2].

Can I take a BDH loan now and refinance with PCH later?

Not quickly. BDH does not allow early repayment before seven years from signing unless the bank agrees, and charges a penalty after that[1,4]. Whether a BDH loan blocks a later PCH loan is not confirmed, so ask PCH.

Is the BDH 5.75% rate fixed?

BDH says 5.75% is subject to amendment[1,2,3]. Its February 2026 terms fixed the rate for the first year only, and it has not said whether the same applies at 5.75%[4].

Sources

Checked against these sources. The numbers in the text point here.

  1. 1.
    Banque de l'Habitat - Purchase loan details

    Banque de l'Habitat S.A.L. (BDH) · undated · read 17 Oct 2026

  2. 2.
    Lebanon's PCH eyes USD 100 mn to restart subsidized mortgages at rates below Gulf-funded lender

    EnterpriseAM (MENA+ Edition) · 7 Sept 2026 · read 17 Oct 2026

  3. 3.
    The rebound is real but housing finance is still short in Beirut

    An-Nahar · 23 Sept 2026 · read 17 Oct 2026

  4. 4.
    BDH USD Purchase Loan Key Fact Statement (BDH - CPU - KFS - Feb 26)

    Banque de l'Habitat (BDH) · February 2026 · read 17 Oct 2026

  5. 5.
    Banque de l'Habitat - What's new

    Banque de l'Habitat (BDH) · 11 Aug 2025 · read 17 Oct 2026

  6. 6.
    Housing Loan Limit Raised to $100K, Here Are the New Requirements

    Beirut.com · 25 Jun 2025 · read 17 Oct 2026

  7. 7.
    Real estate in Lebanon: sales dive, prices resist… the paradox of a market that has become inaccessible

    Libnanews · 1 Oct 2026 · read 17 Oct 2026

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