Kalatz is the most predictable track and counts as fixed under the 66.66% rule. You pay for the certainty: its starting rate is usually higher than Prime or the indexed tracks (see the rates page for the current level). Because nothing adjusts, the payment is the same in month 1 and in month 300, which makes budgeting simple.
Early repayment is where Kalatz can cost you: if the Bank of Israel's average mortgage rate has fallen below your rate and below the average rate on the day you borrowed (the lower of the two counts), you owe a capitalization fee to repay or refinance. On an ordinary loan the fee is reduced by 20% from the third year and by 30% from the fifth; a bank loan supplementing a Zakaut loan gets 10%, 20%, 30% and 40% off after 1, 2, 3 and 4 years. If the average rate is above that lower rate, there is no capitalization fee: a 5% Kalatz taken when the average was 3% has none while the average is 4%.
The pitfall is putting the whole loan in Kalatz for peace of mind: it is the safest payment, but usually the most expensive track and the hardest one to leave. Many mixes hold only the fixed share they need and keep the rest flexible.
Example
₪500,000 in Kalatz over 25 years at an illustrative 5% means ₪2,923 every month for 300 months and about ₪876,900 repaid in total. If you repay early when the Bank of Israel's average rate is below 5% and below the average on the day you borrowed, expect a capitalization fee; otherwise there is none.