Monthly repayments that would have been NIS 4,009 a year ago on a 30 year mortgage now cost NIS 5,082, according to Vider Mortgage Consultants.
The announcement this afternoon by the Bank of Israel Monetary Committee of another 0.5% interest rate hike is more bad and costly news for mortgage takers. This is the eighth rate hike made by the Bank of Israel since April 2022, and the third consecutive 0.5% hike, as rates have increased from an historic low of 0.1% to 4.25% following today's hike. There are likely to be more hikes as the Bank of Israel seeks to tame inflation.
According to Vider Mortgage Advisors, in a special simulation for "Globes," a homebuyer taking an average mortgage of NIS 1 million over 30 years, with 35% on the prime interest track, 40% on fixed unlinked interest and 25% on variable linked interest will now have monthly repayments of NIS 5,082. A year ago before the Bank of Israel started hiking the interest rate, these monthly repayments would have been NIS 4,009. Today's 0.5% hike has pushed up the monthly repayments by NIS 107 from NIS 4,975 to NIS 5,082.
Published by Globes, Israel business news - en.globes.co.il - on February 20, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
Mortgages credit: Shutterstock