The total number of mortgages granted to the public reached NIS 8.27 billion in December
Posted on Jan 26, 2021 by Ifi Reporter
The total number of mortgages granted to the public reached NIS 8.27 billion in December 2020, an increase of 16% compared to the previous month and a similar increase compared to December of the previous year. This is what the Bank of Israel's monthly report shows on the extent of mortgage performance.
The credit figure for investment apartments also reached NIS 1 billion in December 2020, the highest amount since August 2015. The volume of credit to investors in apartments jumped following the abolition of the tax burden on investors in July 2020 and the reduction in the attractiveness of investing in real estate abroad. Total credit to investors in dwellings jumped by 22% compared to November 2020 and by 11% compared to December 2019. The volume of loans to buyers of subsidized dwellings (price per occupant) amounted to NIS 1.085 billion, similar to the previous month and an increase of 9% compared to December 2019.
According to the report, last December was characterized by a decline in the mortgage deferral rate - only 12% of borrowers, similar to July data, which were the lowest in the deferral rate since the deferral relief was announced. In total, there are about 100,000 customers who take advantage of the opportunity to defer mortgage payments after being in financial distress. The reliefs announced by the Bank of Israel do not reduce the debt repayment burden but provide a temporary solution after which customers will have to complete the payments that were not repaid on time and even pay interest on the deferral.
December figures reflect a period of relief since the Corona crisis began. However, since then the situation has changed in the face of the third closure that began this month and was the most severe and prolonged since the first closure. At the height of mortgage payment deferrals, in May 2020 the deferral rate was 25%.