The bank published new data according to which the Israeli public continues to flock to take mortgages, despite attempts to cool down the market.
There has been an increase in the number of mortgages Photo Credit: Channel 2
Following the publication of data by the Housing Ministry regarding the prices of apartments yesterday, the Bank of Israel presented new data for July and August showing that Israelis continue to flock to take mortgages. The increase in the number of registered transactions exists despite the Bank of Israel’s attempts to cool the market.
According to the data published this morning by the Bank of Israel, the debt balance of Israeli home owners in the month of July stands at around 401 billion NIS. The total household debt balance grew by around 3.3 billion NIS (an increase at the rate of 1.2%) and stood at the end of July at about 284 billion NIS.
Additional data also showed that in the month of August, the total amount from the number of people taking mortgage transactions was at around 8.4 billion NIS. This figure is higher than the average monthly YRD performance which stands at around 4.4 billion NIS.
The data was published against the background of the Bank of Israel’s attempts to cool the housing market and the mortgage bubble dimension where there is an immediate danger for young couples wanting to purchase their first apartment. In the month of August, the Bank of Israel imposed limitations when approving mortgage deals designed to reduce risks for many Israeli citizens.
135 salaries needed to purchase an apartment
According to their calculations, in the first half of 2013, it took the average Israeli citizen 135 monthly salaries to succeed to purchase an apartment compared with 132 the year before. In order to purchase a new apartment with four rooms, it took the average Israeli citizen 144 salaries compared to 142 salaries last year.