Aug 10
10
40% of Mortgage Holders Concerned About Ability to Repay
40% of mortgage holders in Israel are concerned about their ability to repay the loan, “IDF Radio” (Galei Zahal) reported today based on a survey by
Shiluv Millward Brown. Mortgage holders are particularly worried by possible future interest rate rises by the Bank of Israel, which would make their mortgages more expensive.
Last month, the Bank of Israel raised the interest rate by 25 basis points to 1.75% mainly because of the ongoing rise in apartment prices.
Shiluv Millward Brown VP Itay Oleinik said, “In a country in which one third of the population has a mortgage, and for 63% of them repayments represent a large proportion of their income, a rise in the interest rate may hurt the same population group that the banks are trying to help – young people, of whom half are worried by their ability to repay the mortgage they have taken.”
Dani Avrahami, a 30-year old architect and mortgage holder said, “I think that there is no proportionality between the prices of apartments and salaries. The young generation has no chance of buying an apartment, and people under 30 will live in rental accommodation all their lives.”
According to the Shiluv Millward Brown survey, 84% of young people say that their mortgage is a very significant part of their income.
Published by Globes, Israel business news – www.globes-online.com
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