Interest rate comparisons—housing loans

This information is presented as a public service solely for the purpose of making general comparisons, and is subject to the terms of use of the Bank of Israel website. The information does not include all the terms or restrictions applicable to the housing credit services offered by each banking corporation. We emphasize that customers should examine the details, the terms, and the conditions of the relevant service based on the service agreement offered by the banking corporation.

Data on the interest rates charged by the banking corporations were submitted by the banking corporations to the Bank Supervision Department and are presented on this page as submitted, pursuant to the provisions of Section 16K of the Banking Law (Service to Customer) 5741-1981. Note that the Bank of Israel is not liable for the integrity, contents, or presentation of the data. The banking corporation that provided the information has full liability for the data.

Data on the portfolio internal rate of return (IRR) (the actual cost of credit  was calculated by the Banking Supervision Department according to the formula defined in Proper Conduct of Banking Business Directive No. 451 “Procedures for Extending Housing Loans” [1] and on the basis of the data submitted by the banking corporations. Note that data are presented solely for the purpose of a general comparison, and all customers should examine the data relevant to them based on the service agreement offered by the banking corporation.

Notes:

1. The data are published on the basis of the banks’ reports of interest rates and performance of housing credit, and on the methodology for calculating IRR that appears in Proper Conduct of Banking Business Directive No. 451 [LINK].
2. This publication gives access to the portfolio mix of each bank in the publication month, together with the IRR charged for each track and the portfolio IRR as calculated by the Bank of Israel. Monthly performance data also include mortgages granted in previous periods.
3. Calculation of IRR – uses the yield curves as of the end of the publication month; excludes bullet loans, balloon loans, and foreign currency loans; and defines the period of change for variable (non-Prime-linked) interest rates as five years.
4. The data represent the mean per portfolio and not mortgages effectively granted. Many features of the credit may affect a customer’s average effective interest rate. These include, but are not limited to, a customer’s credit data, loan percentage, condition of the property, disposable income, and loan period.
5. Banks are classified by their share of the housing credit market.