Master the Israeli mortgage market. Learn about different loan tracks, understand regulations, and make informed decisions about your Tamhil (mix).
Prime is 4.75% today, but your mortgage rate is Prime plus or minus a personal margin. What drives it, how to read P−0.7 and how to negotiate it.
Read more — Prime Margin on an Israeli Mortgage: What Decides ItHow Israel's Housing Ministry counts Zakaut points for olim and residents, what each band pays (₪54,240 to ₪161,665), the rate, and how to get your certificate.
Read more — Zakaut Points: What Your Eligibility Loan Is WorthIsraeli banks may not lend if your mortgage payment exceeds 50% of your income, and rarely go above 40%. Which income counts and how to find your maximum loan.
Read more — How Much Can I Borrow in Israel? The 40% and 50% RulesHow Israel's Consumer Price Index (Madad) changes the balance and the payment of CPI-linked mortgage tracks, with a worked example and what to check before you choose them.
Read more — The Hidden Cost of Madad: How CPI Indexation Moves Your MortgageWhat Prime really is (the Bank of Israel rate + 1.5%), how your personal margin works, how fixed-rate Kalatz differs, and how to split a mix within the 66.66% variable-rate limit.
Read more — Fixed vs. Prime: How to Compare Israel's Two Main Mortgage RatesWho counts as a foreign resident under Bank of Israel rules, why foreign residents can borrow at most 50% of the price, and what to prepare before you buy from abroad.
Read more — Buying a Home in Israel from Abroad: The 50% Financing Limit ExplainedWhat Bank of Israel data show about Prime margins at each bank, what decides your price, and a step-by-step way to make banks compete for your mix.
Read more — Leumi vs. Hapoalim vs. Mizrahi: How to Negotiate Your MortgageHow the Israeli early repayment fee is calculated, which tracks pay it, the discounts after 3 and 5 years, and a worked example.
Read more — Refinancing Your Mashkanta: When Does the Early Repayment Fee Make Sense?What the expert receives, what happens after you ask to be put in touch, what the promise covers and the questions to ask about the fee before you sign.
Read more — How Ribit's Mortgage Experts WorkTypical fees, when they fall due, who may pay an adviser, why the profession is not licensed yet and the red flags to look for in a fee agreement.
Read more — How Mortgage Advisers Are Paid in IsraelOlim get a state-backed eligibility mortgage for 15 years from oleh status, not 10. When it changed, who qualifies, and what happens after year 15.
Read more — Olim Mortgage Eligibility: 15 Years, Not 10Since 1 Oct 2026, Israeli banks check the 66.66% variable-rate cap and the 50% PTI limit on all credit secured on your home. What it means if you add a loan.
Read more — Israel Mortgage Rules from 1 October 2026Olim pay 0% up to ₪1,978,745 and 0.5% up to ₪6,055,070 on a single home, if they buy within 7 years of aliyah. 2026 brackets, rules and how to claim.
Read more — Purchase Tax for Olim in Israel: 2026 RatesRent assistance for olim (amounts by aliyah date) and your rights under Israel's Fair Rental Law: deposit caps, repair deadlines, notice periods, broker fees.
Read more — Renting in Israel as an Oleh: Rent Aid & Tenant RightsFixed Required
Variable rate: at most 66.66%
All variable-rate tracks together (Prime, Matz and every track that resets every 1 to 10 years) may not exceed two thirds of the loan. There is no separate Prime limit since December 2020.
Fixed rate: at least 33.34%
At least one third must be at a rate that never changes for the whole term: Kalatz, Katz or Zakaut.
Financing: 75% / 70% / 50%
Up to 75% of the price for a single home, 70% for a replacement home, 50% for an investment property.
Payment: at most 50% of income
Banks may not approve a payment above 50% of net income. Above 40% approvals are rare because the bank must hold more capital.
Maximum stability, higher cost
Best for: Risk-averse borrowers, fixed income, long-term planners
Mix of stability and flexibility
Best for: Most borrowers, medium risk tolerance
Lower initial payments, higher risk
Best for: Young professionals expecting income growth, high risk tolerance
Uses your Zakaut amount first, then a standard mix
Best for: Anyone with Zakaut eligibility, olim or residents
Madad (מדד) is the Hebrew term for the Consumer Price Index (CPI). When a loan is "indexed to Madad," your loan principal is adjusted monthly based on changes in the CPI. If inflation is 3%, your remaining debt grows by 3%.
CPI-indexed loans offer lower initial interest rates because the bank's inflation risk is transferred to you. In low-inflation periods, this saves money. In high-inflation periods (like 2022-2023), your payments can increase significantly.
Loan of ₪500,000 after 5 years:
* Simplified example. Actual impact depends on amortization schedule.
Recommendation: If you're risk-averse or on a fixed income, prefer non-indexed (Kalatz) tracks even if rates are higher.
Variable rate: Prime (Bank of Israel rate + 1.5%) plus or minus your bank margin
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Fixed rate, non-indexed - your payment stays constant
Volatility Risk
Inflation Risk
Advantages
Disadvantages
Fixed rate, CPI-indexed - stable rate but principal adjusts with inflation
Volatility Risk
Inflation Risk
Advantages
Disadvantages
Variable rate, CPI-indexed - double exposure to market changes
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
State loan at a fixed, CPI-linked rate for people without a home who qualify by points (residents and olim)
Volatility Risk
Inflation Risk
Advantages
Disadvantages
Variable rate, non-indexed, adjusts every 18 months based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Variable rate, non-indexed, adjusts every 3 years based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Variable rate, CPI-indexed, adjusts every 3 years based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Variable rate, non-indexed, adjusts every 5 years based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Variable rate, CPI-indexed, adjusts every 5 years based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Variable rate, non-indexed, adjusts every 10 years based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
Variable rate, CPI-indexed, adjusts every 10 years based on government bonds
Volatility Risk
Inflation Risk
Advantages
Disadvantages
⚖️ Variable-rate tracks together: at most 66.66% of the loan
| Track Type | Volatility Risk | Inflation Risk | Fixed Rate | CPI Indexed | Adjustment Period | Exit Penalty | Max % | Trend |
|---|---|---|---|---|---|---|---|---|
📈 Prime פריים | High Risk | Low Risk | Variable Rate | Non-Indexed | Continuous | Free Exit | 66.66% | — |
🔒 Kalatz קל"צ | Low Risk | Low Risk | Fixed Rate | Non-Indexed | N/A | Exit Penalty | 100% | — |
📊 Katz ק"צ | Low Risk | High Risk | Fixed Rate | CPI Indexed | N/A | Exit Penalty | 100% | — |
🎲 Matz מ"צ | High Risk | High Risk | Variable Rate | CPI Indexed | 5 years | Exit Penalty | 66.66% | — |
🏛️ Zakaut זכאות | Low Risk | Medium Risk | Fixed Rate | CPI Indexed | N/A | Free Exit | 100% | — |
🔄 Bond 18M משתנה לא צמודה כל 18 חודשים | Medium Risk | Low Risk | Variable Rate | Non-Indexed | 18 months | Exit Penalty | 66.66% | — |
⏱️ Bond 3Y משתנה לא צמודה כל 3 שנים | Medium Risk | Low Risk | Variable Rate | Non-Indexed | 3 years | Exit Penalty | 66.66% | — |
📉 Bond 3Y Indexed משתנה צמודה כל 3 שנים | Medium Risk | High Risk | Variable Rate | CPI Indexed | 3 years | Exit Penalty | 66.66% | — |
📅 Bond 5Y משתנה לא צמודה כל 5 שנים | Low Risk | Low Risk | Variable Rate | Non-Indexed | 5 years | Exit Penalty | 66.66% | — |
📊 Bond 5Y Indexed משתנה צמודה כל 5 שנים | Medium Risk | High Risk | Variable Rate | CPI Indexed | 5 years | Exit Penalty | 66.66% | — |
🗓️ Bond 10Y משתנה לא צמודה כל 10 שנים | Low Risk | Low Risk | Variable Rate | Non-Indexed | 10 years | Exit Penalty | 66.66% | — |
📈 Bond 10Y Indexed משתנה צמודה כל 10 שנים | Low Risk | High Risk | Variable Rate | CPI Indexed | 10 years | Exit Penalty | 66.66% | — |
Historic interest rates for each track. Toggle lines on or off; the dashed line is the average across all tracks.
Key terms and concepts explained
Visual Examples
Click on terms to see detailed explanations and examples.
A mortgage mix (Tamhil) is the way your loan is split between several tracks, for example Prime, Kalatz and Katz, each with its own rate type, indexation and term. In Israel a mortgage is usually split into several tracks, within the limits set by the Bank of Israel.
Prime is a variable-rate track. Bank of Israel rules cap all variable-rate tracks combined (Prime, Matz and every track whose rate resets, for example every 5 years) at two thirds of the loan. Prime alone can therefore reach about 66% only if no other variable track is used.
At least one third of the loan (33.34%) must be at a rate that never changes for the whole term: Kalatz (fixed, not indexed), Katz (fixed, CPI-indexed) or the state Zakaut loan. Tracks that reset every 5 or 10 years count as variable, not fixed.