May looks like being a particularly strong month for mortgage taking due to concerns that purchase tax on home purchases for investment might rise. Sources in the banking sector estimate that May mortgage taking might cross the NIS 5 billion threshold, about 10% above the monthly average in the past year.
One senior banking source said, "The past month has seen hysteria for mortgage banks and contractors have also witnessed and encountered huge demand."
All recent months have been strong in the mortgage market. Mortgages worth NIS 5.6 billion were taken in March, for example, with more modest amounts of NIS 4.71 billion in April, NIS 4.62 billion in February, and NIS 4.57 billion in January.
The positive sentiment began with the cancellation of former Minister of Finance Yair Lapid's 0% VAT plan, which brought many young couples off the fence and into the market, and the aftermath of the cancellation is still being felt. To this must be added reports that new Finance Minister Moshe Kahlon plans raising purchase tax on homes bought for investment.
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015