Rates & market updates
Israeli mortgage rates — prime rate and current market updates
An up-to-date view of the Bank of Israel rate, the prime rate and the typical ranges banks are offering on the main mortgage tracks, plus the market news that moves your monthly payment.
Last updated: 1 August 2026
Where rates stand now
Prime rate
4.75%
0.25% · 1 September 2026
Bank of Israel rate
3.25%
In Israel, the prime rate = the Bank of Israel rate + 1.5%.
Trend over time
Prime rate over the last 12 months
The prime rate is the Bank of Israel policy rate plus 1.5%. It directly drives monthly payments on prime-linked and variable mortgage tracks.
Source: Bank of Israel
| Month | Prime rate (%) |
|---|---|
| Sep 25 | 6.0% |
| Oct 25 | 6.0% |
| Nov 25 | 5.75% |
| Dec 25 | 5.75% |
| Jan 26 | 5.75% |
| Feb 26 | 5.50% |
| Mar 26 | 5.50% |
| Apr 26 | 5.50% |
| May 26 | 5.25% |
| Jun 26 | 5.25% |
| Jul 26 | 5.0% |
| Aug 26 | 4.75% |
Typical rate ranges by track
Indicative ranges based on offers seen in the market. Your actual rate depends on loan-to-value, income, credit profile, track mix and the bank — and can often be improved through negotiation.
| Track | Annual rate range | Characteristics |
|---|---|---|
| Prime | 4.50%–5.0% | Variable · UnlinkedMoves with Bank of Israel decisions. Up to two thirds of the mix. |
| Fixed, unlinked | 4.60%–5.40% | Fixed · UnlinkedFull payment certainty, usually the highest rate. |
| Fixed, CPI-linked | 3.0%–3.80% | Fixed · CPI-linkedLower headline rate, but principal and payment follow the CPI. |
| Variable every 5 years, unlinked | 4.80%–5.50% | Variable · UnlinkedAn exit point every 5 years, usually without penalty. |
| Variable every 5 years, CPI-linked | 3.20%–4.0% | Variable · CPI-linkedLowest headline rate, with double exposure — index and rate reset. |
Upcoming interest-rate decisions
The Bank of Israel publishes its rate decision eight times a year. Next dates:
- 19 October 2026
- 30 November 2026
Rate and mortgage-market updates
What changed recently, and what it means in practice for borrowers.
Banks widen discounts on the fixed unlinked track
Following July's cut, several banks trimmed fixed unlinked pricing by roughly 0.1–0.2 percentage points for borrowers with low loan-to-value. If your approval in principle is more than two months old, it is worth asking for a fresh quote.
Bank of Israel cut the rate by 0.25%
The policy rate moved to 3.5% and the prime rate to 5.0%. On the prime track that is roughly ₪13–15 less per month for every ₪100,000 of balance over 25 years.
Bank of IsraelCPI prints and what they do to linked tracks
A rising index increases the outstanding principal on CPI-linked tracks even when the monthly payment looks stable. Judge a linked track by its total cost over the full term, not by the headline rate.
Refinancing is worth checking again
Borrowers who signed at the 2023–2024 rate peak can often save tens of thousands of shekels by refinancing. The check covers early-repayment penalties, balances and the existing track mix.
General information only, not financial advice or an offer of credit. Rates are indicative, change daily and differ between banks. The Bank of Israel and prime rates are verified against the official Bank of Israel publication.
Frequently asked questions
Complementary tracks worth exploring
- Mortgage RefinanceProfessional review of your existing mortgage to lower costs, improve terms and align it with your current situation.Learn more
- Mortgage for Home PurchaseFull support through your home purchase — from affordability check to securing the mortgage on the best possible terms.Learn more
- Debt ConsolidationCombine multiple loans into one organized track to reduce your monthly payment and simplify your financial life.Learn more
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Benny Berman 2
Netanya, Israel