Bank of Israel Clamps Down on Mortgage Terms to Avoid Real Estate Bubble
Globes, an online real estate financial newspaper published in Rishon LeZion, the fourth largest city in Israel reports the Bank of Israel is set to launch a second round of macro-prudent measures in real estate. The action aims to prevent the creation of a real estate bubble through mortgages caused by the new expansionist monetary policy in Israel.
Last week, the Bank of Israel cut the interest rate for July by 25 basis points to 2.25%.
Globes reports the Bank of Israel is planning two measures. The first is to directly cap the loan-to-value (LTV) of mortgages to 33-40%. The second is to increase the banks' provisions for mortgages hoping to reduce their incentives to grant new mortgages.
Lower interest rates make it more worthwhile to invest in real estate, and less worthwhile to invest in financial assets.
Last week, the Bank of Israel cut the interest rate for July by 25 basis points to 2.25%.
Globes reports the Bank of Israel is planning two measures. The first is to directly cap the loan-to-value (LTV) of mortgages to 33-40%. The second is to increase the banks' provisions for mortgages hoping to reduce their incentives to grant new mortgages.
Lower interest rates make it more worthwhile to invest in real estate, and less worthwhile to invest in financial assets.
Categories
Industry News Residential Property News Commercial & Industrial Property Legal & Financial Projects & Investment Hotels & Resorts Building Design & Improvement Commentary & Analysis Property Shows & Events United States Canada United Kingdom Europe United Arab Emirates Middle East Israel India Australia & New Zealand China Hong Kong Singapore Japan South Korea South East Asia Central & South America South Africa North Africa Video
Latest Articles
Bangkok property - top tipsBuying property in BangkokBuying condos in Bangkok - Condo buyers guideBuying houses in Bangkok - house buyers' guide42% of Caspian’s units snapped upIs it time for a Correction in the Phuket Property Market?Phuket’s Taj Exotica makes genuine startKanda plans two residential projectsDevelopers add community flavourChone Sophonpanich enters realty
Tags
Comments
Newsletter
Get each new article from
Estates Report
Your email: