Tighter bank regulations hit home buyer groups
Posted on 17. Feb, 2010 by buyitinisrael in Israel Real Estate, Mortgages
The Bank of Israel has ordered banks to tighten credit to buyers groups because of the inherent risk in their business. Supervisor of Banks Rony Hizkiyahu has ruled that bank credit to buyers groups will not be considered as housing credit to a single borrower like an ordinary mortgage loan, but as ordinary commercial credit given to a contractor. Only when a project is completed and the apartment keys are handed over to the buyer will the loan be reclassified as a housing loan.
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