Total household debt reached record levels in 2014, mainly as a result of the leap in housing prices, which led purchasers to take more mortgages.
Bank of Israel figures published today show that households' balance of debt jumped 7% in 2014, amounting to a NIS 28.4 billion increase. New mortgages were up 5.2%, a NIS 15 billion increase.
Total mortgages stood at NIS 303 billion at the end of 2014, and household debt totaled NIS 438 billion; in other words, mortgages accounted for 69% of all household debt, a proportion that has been consistent in recent years.
Household debt rose 0.7%, or NIS 3.2 billion, in December 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015