The cap on developer subsidised loans runs to the end of 2026
Balloon and bullet loans whose interest is paid by the developer are capped at 10% of a bank’s quarterly lending until December 31, 2026 (amendment to directive 329). LTV limits: 75% for an only home, 70% for a replacement, 50% for an investment home; under the directive’s definitions a non-resident falls into the 50% group.
What this changes in the calculation
A non-resident’s mortgage in Israel is up to 50% of the price (a conclusion from the text of the directive).
- Source
- Bank of Israel
- Status
- verified
- Published