Regulatory Alerts2020-12-27
Limitations on Issuing Housing Loans
The Bank of Israel's Banking Supervision Department amended Proper Conduct of Banking Business Directive no. 329 to cancel the Prime rate limitation on housing loans. The updated regulation retains only the variable rate limitation, requiring that at least one-third of the total mortgage loan be issued at a fixed interest rate while up to two-thirds may be variable. These amendments apply to new loans starting January 17, 2021, with a later effective date of February 28, 2021, for loans intended to finance early repayment.
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