Mortgage

Until recently, buying a home was the cornerstone of the American Dream for young people, but soaring housing prices have forced a shift in strategy. Instead of mortgages, Gen Z is increasingly turning to trading apps and long-term investments in stocks and pension accounts, while delaying family milestones and living with parents to build capital.

Since November 2025, the Bank of Israel has lowered the interest rate five times, resulting in a significant reduction in costs for mortgage borrowers. The new interest rate cut will take effect this coming Thursday.

The Bank of Israel interest rate stands at 3.5%, deposits and money market funds still provide a decent return, but many mortgages cost 5% or more; on 200,000 shekels, the gap can reach thousands of shekels per year - and there are also considerations of tax, early repayment fees, and liquidity.

The average apartment price rose by 3.7% this year, the average mortgage continues to rise, and Tidhar reports point to a jump in revenue and profit, while the company previously spoke of a price crash and is now predicting a market recovery.

Deputy Chairman of the Mortgage Consultants Association, Avi Yusufov, explains what is behind the drop in the number of delinquencies and talks about the wave of refinancing sweeping the market: "More households have consolidated existing loans."

Bank of Israel data reveals gaps in interest rates and mortgage tracks between the major banks. Experts explain why the average interest rate is misleading, how banks profit from each track, and what really determines the best deal for the customer.

Over the past year, the portfolio of balloon and bullet mortgage loans has grown by approximately 20%, significantly outpacing the growth of the total mortgage market. By July 2026, the balance reached 29.2 billion shekels.

Despite the ongoing slowdown in the housing market, the average mortgage continues to climb, reaching 1.117 million shekels in July — the second-highest figure ever. About 43% of new mortgages were taken for properties worth 3 million shekels or more. Contractor loans also remained at a high level, with a volume of 1.6 billion shekels, but their share of total mortgages actually decreased.

Bank of Israel data reveals a significant trend: the number of mortgage refinancings has reached a peak not seen since 2023. This largely explains the jump in total mortgage volume. Additionally, there is a positive indicator for the Bank of Israel: the number of those in arrears on mortgage payments is decreasing and is at its lowest level this year.

The south was a key region for 10/90 and 20/80 financing campaigns, allowing buyers to enter the market with low initial capital. As large payments fall due, the combination of high interest rates, repayment capacity issues, and eroding apartment prices in some projects is forcing a recalculation. In the Beersheba area, the cancellation rate for 2023 deals approached 7%, significantly higher than...

Bank Jerusalem and Migdal have signed a joint financing agreement to establish a 400 million shekel credit line. The funds are intended for providing "jumbo loans" secured by residential real estate.

An analysis reveals that contractors receive only 16% of the money due to 'on paper' sales. Ministry of Finance data explains why large contractors survive while small ones collapse.

Mizrahi Tefahot Bank closed the second quarter of 2026 with a 1.7% decrease in net profit to 1.43 billion shekels. Moderating inflation and lower interest rates have curbed profit growth, while the bank's mortgage portfolio faces mounting risks.

According to second-quarter reports for 2026, Efi Capital sold 379 apartments in the first half of the year—an increase over last year. However, the company faces pressure to maintain momentum, especially as 712 of its units are tied to the 'Mechir LeMishtaken' program.

Mimun Yashir's profits jumped more than 4-fold in the quarter, driven by strong performance in mortgage and auto finance. Competitor Nawi, holding about 10% of the shares, is reporting a paper profit of approximately 40 million shekels.

When work slowed down and her financial situation became complicated, Drea de Matteo found an unexpected source of income to save her home.

The share of the prime rate track in mortgages has almost doubled within a year, while the public is moving away from CPI-linked tracks. The choice reflects an expectation for continued interest rate cuts in Israel, but the global picture has changed: long-term bond yields are climbing, markets in the USA and Europe are pricing in the possibility of rate hikes, and further cuts by the Bank of...

A third of apartment buyers in Be'er Sheva did not pay a single shekel before cancelling their contracts, a trend now affecting the luxury market in Tel Aviv. New Ministry of Finance data reveals that developers are taking excessive risks to secure sales.

Data from the Ministry of Finance reveals that many buyers canceling apartment deals faced financing difficulties, often having paid nothing prior to cancellation. While sales contracts typically include a 10% penalty, sellers frequently waive the full amount or accept partial compensation.

Billionaire Mat Ishbia is in trouble following a failed takeover attempt and poorly timed interest rate bets.

The Ministry of Finance publishes a pessimistic picture of the housing market, amidst a very positive review for contractors. Why the 90/10 promotions should be stopped and is the era over where you could win an apartment at a discount | Friday column

Those who cannot afford an apartment in the center are buying on the periphery. How much does an apartment without a protected space (MAMAD) cost, and how were two apartments in Tel Aviv purchased at such surprising prices? Real estate deals of the week.

A couple from Netanya living in Moscow discovered a 1.2 million shekel mortgage registered on their apartment. They claim they are victims of a fraud network that used stolen documents to secure the loan.

The average monthly expenditure of a household in Israel is 18,088 shekels, but a family with two children in the center can exceed 25 thousand.

Luxury flights to New York and Las Vegas, direct payments of tens of thousands of shekels, and aggressive competition for every borrower: non-bank financial institutions are luring mortgage consultants with generous incentives. The result: clients are pushed into expensive loans, sometimes with double the interest rate. The industry admits: 'This creates a conflict of interest.'

According to Ministry of Finance data, apartment sales jumped by 50% in June compared to the same period last year, during the war with Iran. Despite the growth, the market remains mixed, with Netanya leading in financing benefits offered to buyers.

Mortgage volume reached 11.5 billion shekels in July, an 8% increase year-on-year. Experts warn that these figures reflect past transactions and create a misleading sense of market health.

An advanced training fund can reduce the mortgage and save on interest, remain invested, or serve as a basis for a loan. But before comparing interest to yield, one must understand what each option does to our debt and financial flexibility. And the most important question: is the apartment really within our budget?

A new purchase model: the buyer pays only one million shekels in the first stage, enters the apartment upon its completion — and pays the balance only two years after moving in. The Hagag Group is launching this unprecedented new promotion at the Infinity project on Ibn Gabirol Street in Tel Aviv.

The crisis regarding leased lands in Jerusalem has led to a 50% decline in apartment values in prestigious neighborhoods. Banks have ceased mortgage lending, and owners face significant legal uncertainty.

While 8,000 people won a discounted apartment this week, over 100,000 participants were left empty-handed. Amid a shortage of ready-to-move-in housing and political maneuvering within the Israel Land Authority, the real estate market faces significant challenges.

The payment schedule, index linkage, entry date, securities, and liability for defects vary between the two transactions; a new apartment provides legal protections but includes uncertainty and future costs, while second-hand allows viewing the property and requires careful verification of rights and the seller.

New AI-based tools are helping homebuyers and sellers make more informed decisions. Discover how these technologies are changing the way we assess financial capacity and the true value of real estate.

A brother and sister living in Germany claim that a network of impostors mortgaged their Netanya apartment to a non-bank lender by forging their IDs. They are now seeking to annul the lien.

Alongside the market slowdown, Bank of Israel data reveals that the volume of mortgages for apartments worth over 5 million shekels is soaring — this figure is critical for the housing market. The surprise: how many of the wealthy are taking a mortgage of over 60% of the property value.

While the Bank of Israel interest rate is falling, mortgage rates are not adjusting accordingly. Banks are increasing interest margins, offsetting a significant portion of the economic rate cuts.

An 'Apartment at a Discount' project in Harish, featuring 115 units, reached a winner who placed 3,393rd in the lottery. Amidst housing market stagnation, are better deals available on the free market?

Mortgage refinancing is the process of replacing an existing loan with a new one under better terms. Given the recent decline in interest rates, experts advise borrowers to review their current mortgage agreements.

An acquaintance asked me if the distribution of free apartments by contractors is a sign of an impending real estate market collapse. We examine why this is not the case and what hidden factors, including crime, are affecting prices.

The Bank of Israel has lowered the interest rate to 3.5%, with the average non-indexed mortgage rate falling to 4.74%. However, the feasibility of refinancing depends heavily on when the original agreement was signed, as prepayment penalties often offset potential gains. The Bizportal calculator helps borrowers assess their options based on basic loan data.

Market conditions have made variable-rate loans taken during the zero-interest era significantly more expensive than current bank offerings. A proper diagnosis of your mortgage portfolio, willingness to pursue partial refinancing, and discarding myths about 'already paid interest' can save a fortune. Here is how to determine when refinancing is truly recommended.

A new economic review indicates that rising global fuel and energy prices make an interest rate cut in September unlikely, while also raising the consumer price index forecast for the coming months.

Leasing firm Albar is strengthening its mortgage sector presence by acquiring an additional 12.75% stake in Credit 360. The deal values the company at 220 million shekels.

The Ministry of Construction and Housing is establishing an inter-ministerial team to examine mortgage assistance criteria, potentially reviving the issue after the Ministry of Finance's previous opposition. The move, supported by Minister Haim Katz, aims to address the housing crisis, with proposals including a mechanism to replace equity requirements with proven repayment ability.

Shevi Shamir, Deputy CEO and Head of the Retail Division at Mizrahi Tefahot Bank, addressed the housing market situation: "The high volume of mortgages today does not stem from a recovery in the housing market."

Anna Bongart and her daughter Evelina lost Sofia in the October 7 massacre. Months later, the father, Vladislav, took his own life. Now, the family is struggling against insurance companies that refuse to cover their mortgage.

Yinon Magal shared a marketing video with his followers detailing changes he made to his mortgage: "They cut my mortgage almost in half."

A resurgence in the housing credit market: Bank of Israel data reveals the distribution of financing rates and the risk levels taken on by borrowers. Additionally, the data highlights how many Israelis are allocating up to 40% of their monthly income to mortgage payments.

The bank has initiated a private securitization deal backed by its mortgage portfolio, which received a high international rating. These strategic moves have brought the bank's managed mortgage portfolio to approximately 18 billion shekels.

A resident of central Israel who won 10 million shekels shared his modest plans for the future. The winner intends to maintain his current lifestyle while treating his family, including his son serving in the IDF.