Bank of Israel tightens mortgage conditions as housing market heats up
Banks will no longer be allowed to issue mortgages where the portion of the loan with variable interest is above two thirds the entire loan.
Banks Supervisor David Zaken tightened mortgage lending on Wednesday in a bid to keep borrowers solvent if interest rates rise or the labor market worsens. The bank pointed to mortgages’ large and increasing share in total bank credit in recent years.
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