Archive: 8/21/2013
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  8/21/2013, Elul 15, 5773

No Mortgage If Rate is Over Half of Ones Salary


The Bank of Israel issued more restriction of mortgages on Wednesday. If the monthly payment is more then half of ones salary, then one may not obtain a mortgage or a house or apartment. Other restrictions were imposed as well such as a ban on mortgages over a 30 year period. In a statement, the Bank of Israel said, "The objective of the guidelines is to reduce risk, particularly the interest rate risk, for the public, which is taking mortgages on terms that are liable to jeopardize the future ability to repay the mortgage, resulting in potential risk to the banking system from these loans."