Mortgages
Is this the end of an era of cheap mortgages in Israel?
Posted on 02. Feb, 2010 by Buy-It In Israel Staff.
Interest on mortgages in Israel is set to become more expensive despite the Bank of Israel’s decision to leave interest rates for February unchanged and signs of a moderation in the country’s consumer price index (Madad). Over the last couple of months, the prime rate rose by 0.75%, as the Bank of Israel started to raise interest rates after keeping them at a record low of 0.5%, while at the same time, the consumer price index surged.
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Home-financing in Israel: What are the mortgage options available and is there such thing as a fixed-rate?
Posted on 11. Jan, 2010 by buyitinisrael.
Almost all mortgages in Israel are variable-rate loans linked to either the LIBOR rate, inflation rate or some other index. However, there are some banks that offer a completely fixed mortgage, where the payments will not change over the life of the loan. These mortgages are usually for a maximum of 20 years and are at significantly higher interest rates than the variable loans on offer.
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