Bethel Finance news:
The Bank of Israel is considering dramatic new steps to restrict mortgages in order to cool the rise in prices in Israel's housing market, Channel 2 TV News reports.
The first step being considered by the Bank of Israel, and the more likely, would involve restricting variable interest options to only 30-40% of the mortgage.
The second step would set a mortgage cap of 50% of the value of the property.
The Bank of Israel believes that the public has not yet realized the rising interest repayment schedule that has already been implemented and the way in which higher monthly repayments will make life difficult for mortgage takers.
Any announcement regarding new measure to restrict mortgages will be announced at the same time as the May interest rate decision in the last week of April.
House prices in Israel have risen by 16.3% over the past year and by 60% since May 2007.
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