Category: Mortgages & Finance

Israel mortgage guidelines
Prime interest
Israel mortgage
mortgages in Israel
Mortgage in Israel | How much can I borrow to buy a home in Israel
mortgage in israel
financing a home in Israel
Coronavirus and Israeli mortgages
Madad Consumer Price Index
Mortgages & Finance

Madad, Housing Index and Building Cost Index in Israel

The Madad, which is the Hebrew for Consumer Price Index (CPI) or rate of inflation, is followed very closely by Israelis since movements in the monthly index affect nearly every aspect in life from salaries, mortgages, housing, transportation costs or prices of fruit and vegetables, and other expenses. In brief, a number of very important income and other expense items of every household are linked fully or partially to monthly or quarterly inflation.

Interest rates in Israel
Mortgages & Finance

Interest rates in Israel – a look at historical and current data

In Israel, the rate of interest is announced by the Bank of Israel at the end of every month. These announcements have been made since 1991, and provide the commercial banks with a benchmark for their rates on local-currency unindexed deposits and credit. This rate also affects the banks' prime rates. In the last few years prime interest has been about one and a half percentage points higher than the interest rate announced by the Bank of Israel. Prime rates are particularly important to mortgages linked to the prime interest rate. A mortgage linked to the prime interest rate based on the Bank of Israel rate is usually taken out for a period of up to 25 years.