Mortgage grants for those entitled will be slashed by NIS 1.3 billion, under the cabinet-approved economic plan. The Ministries of Finance and Housing & Construction made the announcement in a special circular to the mortgage banks.
As of mid-April, those entitled to the grants will be compensated with 50% higher mortgages. The extra loan will be for 25 years, at 4% interest.
The circular also stated that the conversion of the grant into additional mortgage credit would apply to all the Ministry of Housing and Construction programs, including those involving apartment owners, non-apartment owners, and urban renewal.
The additional credit will also apply to assistance from exceptions committees and development loans, but to neither those entitled to assistance under the amendment to the Law for the Encouragement of Capital Investments - Tax Benefits for Negev Residents (the Negev Law), nor to defense grants.
The additional credit will be granted to those eligible, who sign contracts for apartment purchases, and those eligible for assistance for self-construction or building extensions, starting in mid-April.
Published by Globes [online] - www.globes.co.il - on April 6, 2003