Jerusalem has the highest average monthly mortgage payment in Israel, and Bat Yam has the highest average loan-to-value (LTV) ratio, according to an analysis of over 600 mortgages of 18 years or more AMG Financial Models Ltd. It found that the average apartment price in Jerusalem is NIS 2.04 million, the average mortgage is NIS 1.05 million (for an average LTV of 51%), and the average monthly payment is NIS 6,062. The average monthly payment in the city is more than double the figure in Beersheva and 50% higher than in Modi'in.
Tel Aviv is in second place, with an average monthly mortgage payment of NIS 5,793 on an average mortgage of NIS 1.01 million on an average apartment price of NIS 2.21 million (for an average LTV of 45%). Rishon LeZion is in third place, with an average monthly mortgage payment of NIS 5,563 on an average mortgage of NIS 966,900 on an average apartment price of NIS 1.62 million (for an average LTV of 60%).
Bat Yam has the highest average LTV, at 62%, with an average monthly mortgage payment of NIS 3,410 on an average mortgage of NIS 592,700 on an average apartment price of NIS 950,700. Netanya has the second highest LTV, at 61%, with an average monthly mortgage payment of NIS 4,772 on an average mortgage of NIS 795.7 on an average apartment price of NIS 1.3 million.
The average LTV in both Ra'anana and Kfar Saba is 53%: the average monthly payment in Ra'anana is NIS 5,053 on an average mortgage of NIS 878,300 for an average apartment price of NIS 1.67 million; while in Kfar Saba, the average monthly payment is NIS 4,949 on an average mortgage of NIS 860,100 for an average apartment price of NIS 1.61 million. In Ramat Gan, the average monthly mortgage payment is NIS 4,736 on an average mortgage of NIS 823,200 on an average apartment price of NIS 1.71million (for an average LTV of 48%). Haifa has a higher LTV and average mortgage rate, despite a lower average apartment price: an average LTV of 60%, with an average monthly payment of NIS 4,833 on an average mortgage of NIS 840,000 on average apartment price of NIS 1.4 million.
Beersheva and Ashkelon were at the bottom of the table. In Beersheva, the average monthly payment is NIS 3,046 on an average mortgage of NIS 529,400 on an average apartment price of NIS 934,500 (for an LTV of 57%); and in Ashkelon, the average monthly payment is NIS 3,086 on an average mortgage of NIS 536,400 on an average apartment price of NIS 1.18 million (for an LTV of 45%).
AMG CEO Amit Kaminsky said, "We see that residents in cities with poorer socioeconomic conditions need higher financing, even though apartments prices are less than in cities with higher socioeconomic conditions, whose residents need less financing, despite higher prices. This indicates that the Bank of Israel's restrictions on mortgages have a greater effect on the poor. To avoid hurting these people in the future, and this equation should be taken into account in any future plan on mortgage restrictions.
Published by Globes [online], Israel business news - www.globes-online.com - on February 6, 2013
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