Last month surpassed the previous monthly record for mortgage take-outs of NIS 13.4 billion in March 2022, the Bank of Israel reports.
Israelis also recorded an all-time unexpected monthly record of NIS 13.8 billion in mortgage loans in December 2024, according to preliminary data from the Bank of Israel. This figure included a record NIS 3.2 billion in “jumbo loans” taken out to finance the sale of new homes with a 10% or 20% down payment by buyers, as well as a record number of loans for general purposes.
The December figure was double the monthly average of mortgages taken out in the rest of 2024. The high amount is probably due to the aggressive marketing of new apartments by developers ahead of the 1% VAT increase and also the desire of buyers to avoid paying the higher amount in 2025. Purchase tax rate.
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Last month was the first time since July 2022 that monthly mortgage take-outs exceeded the NIS 10,000 threshold and beat the previous monthly record for mortgage take-outs of NIS 13.4 billion in March 2022, as buyers rushed to beat interest rate hikes, which began in April 2022. .
Balloon loans of NIS 3.2 billion were more than double the previous record set in July 2023. It is estimated that real estate developers are very concerned about 2025, not only because of the VAT increase, but also because of the economic situation, which could worsen. , which leads to very significant decreases in the purchase of apartments, which may lead to them being exposed to financial problems.
Published by Globes, Israel Business News – en.globes.co.il – on January 14, 2025.
© Copyright Globes Publisher Itonut (1983) Ltd., 2025.
New construction in Israel Credit: Shutterstock
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