January: only 8% of mortgages were frozen or deferred compared with 12% last month

Posted on Mar 6, 2021 by Ifi Reporter

Mortgage freezers are repaying them: Bank of Israel data released today show that as of the end of January, only 8% of mortgages were frozen or deferred, compared with 12% last month and 25% of mortgages at the height of the crisis in April last year.
The data show that the volume of mortgages that are deferred payments decreased during January by NIS 17 billion, and as of the end of January it stands at NIS 32.1 billion. This is the lowest figure since the outbreak of the corona crisis, and is still high compared to routine. For comparison, in February last year, the volume of mortgage deferred payments was NIS 12.5 billion, less than 3.5% of the market.
The sharp decline recorded in January is due to the fact that the mortgage freeze period for most borrowers ended at the end of December. Although there is a new outline for deferring payments, it seems that a significant proportion of borrowers are already in a situation where they can return to repaying the payments as usual, and do not need further deferral. It will also be recalled that in contrast to previous plans that included a loan freeze, this time it is a partial repayment of the mortgage, and banks note that this transition is made smoothly, and the vast majority of borrowers manage to meet the partial payment.
The Bank of Israel also shows that, as published this morning in Calcalist, the volume of new mortgages granted in January was NIS 6.4 billion, similar to the average in the last 12 months. There was an increase in the volume of activity of investors, whose share of the mortgage market was 13.3% in January, compared with less than 11% in the past year. On the other hand, there was a slight decrease in the activity of home buyers under the "price per occupant" program - their share of the market in January was less than 12% compared to 15% in the past year.
During January, the reform came into force, according to which it is possible to take out a mortgage with a prime component of up to two-thirds of the mortgage (compared with one-third before the decision on relief). The impact of the reform is still not reflected in the data for the past month, as taking out a mortgage is a process that takes a certain period of time, and the reform took effect only in mid-January. The average interest rate on mortgages has remained stable, but the reform in the prime interest rate, as well as the declines in the bond market, may affect the average interest rate seen next month.


ABOUT IFI TODAY

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum

Newsline

Former Democratic Senator Joe Lieberman Passes Away at 82 - fell at home

Mar 28, 2024 by Ifi Reporter

The political arena mourns the loss of former Democratic Senator Joe Lieberman, who passed away yesterday at the age of 82. Lieberman, a trailblazer in American politics, made history as the first religious Jewish senator in US history. He leaves behind a legacy marked by his unwavering... Continue reading →

Terrorist Attack Targets Civilians on Route 90 Near Oja in the Jordan valley

Mar 28, 2024 by Ifi Reporter

In a harrowing incident earlier this morning, a shooting attack rocked Route 90 near Oja in the Jordan valley. According to initial reports, a terrorist ambushed a passing bus in the area, unleashing a barrage of gunfire before fleeing the scene. The attack, believed to be premeditated, left a... Continue reading →

Nationwide High School Strike Declared in Israel Amidst Salary Dispute

Mar 27, 2024 by Ifi Reporter

The National Student and Youth Council, alongside parent leaders, issued a stern announcement on Wednesday, declaring a strike in all high schools across Israel starting Thursday. This drastic action follows the failure of negotiations between the teachers' organization and the Ministry of... Continue reading →


Testimonials

No testimonials. Click here to add your testimonials.