Despite the war with Iran, mortgages worth nearly NIS 9 billion were taken during June, the third highest figure this year, according to initial data from the Bank of Israel, even though the entire economy shut down for nearly two weeks.
The data also show that the volume of deferred mortgages, mainly for the purchase of apartments as part of developers pay 20% now 80% later offers, has decreased, but the volume still remains high, despite the restrictions imposed by the Bank of Israel on this matter.
The amount of mortgages taken in June was surprisingly high at NIS 8.91 billion. This amount does not necessarily mean that the real estate market continued to function at a high level in June, but rather that banks approved mortgages on deals from previous months, some of which were recycled mortgages.
The most interesting segment of mortgages is the amount of deferred mortgages. At the end of March, the Bank of Israel announced a series of regulations that limit the ability of developers to launch such operations, but it appears that the restrictions are slowly affecting the market, and it is likely that many deals were processed by banks even before the restrictions, so that the volume of mortgages is still high, although their relative rate has decreased.
In June, banks approved such mortgages worth about NIS 1.3 billion, which does not exceed the amount in previous months. At the same time, these mortgages represented 14.5% of all mortgages taken in June, which is the lowest percentage since January 2024. The numbers are still very high relative to the period before the implementation of these (the second half of 2023), when such mortgages accounted for a single-digit percentage of all mortgages taken.
Published by Globes, Israel business news - en.globes.co.il - on July 14, 2025.
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