Mortgages rose 22% more than the NIS 3.28 billion in April, and 44.6% more than in May 2009.
A continuing rise in home prices and hopes of a fall in prices have not stopped Israeli buyers from rushing to buy apartments. New mortgages totaled a record NIS 4 billion in May 2010, 22% more than the NIS 3.28 billion in April, and 44.6% more than in May 2009.
Are the homebuyers prophets? The surge in mortgages came ahead of tighter Bank of Israel regulators? In late May, Supervisor of Banks Rony Hizkiyahu published new guidelines restricting the banks' new mortgages for borrowers with less than 40% of the necessary capital.
A banker told "Globes" that June figures will be even higher.
It is nevertheless believed that a large proportion of the mortgages take were for refinancing mortgages, a step that usually pays off, according to a study by "Globes".
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010