Bank of Israel limits variable rate mortgages

By GLOBES' CORRESPONDENT
April 27, 2011 14:54

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The Bank of Israel published a new draft directive on Wednesday to limit variable interest mortgages. The directive will apply to new loans approved from May 5, 2011.

The directive limits the part of a mortgage issued at a variable interest rate to one third of the total mortgage granted by a bank to the borrower, down from 76% today. The Bank of Israel said that the new measure would make the average mortgage 1% more expensive. The limit applies on new variable interest rate mortgages where the interest rate is likely to change in a period of less than five years.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
October 22, 2018
Taiwan's Mega Int'l Commercial bank to end Taiwan-Iran clearing mechanismn

By REUTERS