Albar Increases Stake in Credit 360 to 20.75% for 46 Million Shekels

Albar, controlled by Eli Elazar, is expanding its exposure to the Israeli mortgage sector. The company has acquired a 12.75% stake in Credit 360 for 46 million shekels, bringing its total holding to 20.75%. The transaction values Credit 360 at 220 million shekels.

Credit 360 is a non-bank lender specializing in housing finance and loans secured by real estate. Albar, a car leasing firm, is diversifying its operations in line with industry peers such as Shlomo Group, Carasso Motors, and Direct Finance (Mimun Yashir).

Albar launched its mortgage operations in February 2025 following a 2024 pilot program. By the end of the first quarter, its mortgage portfolio reached 300 million shekels. The company projects annual mortgage originations of 1.2 billion shekels for this year and next, aiming for a 2.4 billion shekel portfolio by the end of 2027. Albar also intends to sell mortgage portfolios to institutional investors.

The mortgage market, which grows by approximately 100 billion shekels in new loans annually, remains dominated by banks. According to the Bank of Israel, intense competition has compressed the financial margin for banks from 2%-2.5% in 2018-2021 to just 0.5% as of last September. The financial margin represents the spread between mortgage interest rates and risk-free government bond yields, accounting for borrower risk and management costs.

Despite relative stagnation in the real estate sector, demand for mortgages remains stable. Leasing companies hold competitive advantages over traditional banks:

• More lenient regulation, enabling faster loan processing.

• Higher loan-to-value (LTV) ratios of up to 85%, compared to bank limits of 75% for primary residences, 70% for upgrades, and 50% for investors.

• Flexible underwriting standards, allowing credit access for borrowers who may have previously struggled with repayments and are consequently ineligible for bank loans.