Mortgage Payment Freeze and Loans Up to NIS 150,000: Banks Offer Relief During Roaring Lion

Following the outbreak of Operation Roaring Lion, Israel’s major banks have announced a broad emergency relief framework, including a mortgage payment freeze, loan deferrals, and dedicated credit lines for evacuees, property damage victims, and businesses affected by the security escalation with Iran.

By Dror Nir Castel, Nadlan Center

In response to Operation Roaring Lion and the ongoing security escalation with Iran, Israel’s leading banks unveiled a series of emergency measures designed to ease financial pressure on households and businesses. The framework focuses on immediate assistance for residents evacuated from their homes, customers whose property sustained direct damage from missile attacks, and mortgage holders seeking temporary relief in managing their monthly cash flow during wartime.

For individuals forced to leave their homes or whose properties were directly hit, the banks are offering several targeted solutions.

Bank Hapoalim is providing evacuees with an interest-free loan of up to NIS 40,000 for up to 40 months. The bank has also established a dedicated emergency hotline (*2406) to provide immediate assistance to those affected by the war.

Mizrahi-Tefahot is offering customers whose homes were damaged by missile fire a loan of up to NIS 150,000, or up to 70% of the compensation claim submitted to the Property Tax Authority, for a six-month period at the prime rate. Meanwhile, Bank Leumi is allowing customers who were evacuated or whose property was damaged to defer loan repayments for three months.

Mortgage Payment Freeze and Deferrals

The housing sector is receiving particular attention, especially for those directly impacted by the conflict. Mizrahi-Tefahot is offering its mortgage borrowers who were evacuated due to damage from the attacks a mortgage payment freeze of up to six months, with no limit on the repayment amount and no interest or fees charged during the deferral period.

For other borrowers, starting in early April and subject to defined eligibility criteria and the bank’s discretion, Mizrahi-Tefahot will allow a one-month mortgage payment freeze without interest or indexation.

Bank Leumi is offering mortgage borrowers who were affected or evacuated—whether homeowners or business owners—a three-month freeze on mortgage payments. In addition, reserve soldiers who deposit their salaries with Leumi are also eligible for a similar three-month mortgage payment freeze.

Bank Hapoalim announced that it will allow private customers to defer consumer loan payments (up to NIS 250,000) for three months, subject to contractual interest.

Additional Support Measures

Beyond housing-related solutions, the banks are activating complementary support programs. Reserve soldiers are eligible for benefits including exemption from current account fees (Leumi and Mizrahi), a 1% reduction in overdraft interest (Leumi), or dedicated loans at prime + 0.5% (Hapoalim). Businesses that suffered physical or economic damage may qualify for payment deferrals (Mizrahi and Leumi) or discounted-term business loans (Hapoalim).

Through their customer clubs—Wonder (Hapoalim), Katom (Mizrahi), and Leumi Bonus—banks are also offering discounts on food purchases, overseas accommodation, and leisure products. Customers are advised to contact their respective bank service centers for full details regarding eligibility and benefit duration.