There are those who fear losing their home due to the increase in the interest rate that will make the monthly repayment of the mortgages more expensive (Photo: ShutterStock)
The governor of the Bank of Israel, Prof. Amir Yaron, is expected to announce tomorrow the interest rate hike in the economy.
If there is no shocking surprise, then the interest rate will be raised by another half percent, which will join the previous interest rate increases.
As a result of these increases, there are those who find it difficult to meet the monthly repayment of the mortgage - and since the working assumption is that further increases are expected until inflation is curbed, among some of them there is a real fear of losing their apartment.
In an attempt to help its customers combat the devastating results of the "rising price of money", Bank Hapoali announced today that following the Bank of Israel's interest rate increase in recent months and in order to enable its customers to cope with the increase in mortgage repayments, it will absorb the Bank of Israel's next interest rate increase (expected to be announced tomorrow, the 2.1.23) - and will help customers who may have difficulty with their mortgage payments - so that the amount of their monthly repayment in the prime route will not be affected by this interest rate increase and the prime interest rate will remain for them at a rate of 4.75% at this stage.
The move will be made if the interest rate rises and regardless of the level of the interest rate increase that the Bank of Israel is expected to announce tomorrow.
The move is valid for one year for over ten thousand customers who have an existing mortgage with the bank that includes a prime route (and refers only to it), who meet all of the following criteria:
• Customers have one property pledged to the bank for the mortgage
• The financing rate is over 60%
• The repayment was lower than this month 5000 NIS (as of 4/1/22, before the recent interest rate increases began)
• The total monthly repayment has become more expensive (since 4/1/22) in the amount of over 400 NIS per month
• The loan is paid without arrears
Dov Kotler, CEO of Bank Hapoalim (Photo: Gadi Dagon)
According to the bank's inspection, these criteria refer to customers who own a first apartment with an average mortgage (including young couples who purchased their first apartment) - who were affected to a greater extent by the increase in interest rates.
For these customers, the change will apply automatically and they will receive a notification from the bank on the matter.
According to Hapoalim, the move joins other solutions that the bank provides to its customers, such as the initiative announced by the bank last November - in which it allows customers who wish to extend the period of the prime course on their housing loan, while maintaining the other terms of the original loan course - and this is to help customers and reduce the The monthly repayment in this route, subject to the terms of service.
CEO of Bank Hapoalim, Dov Kotler
: "As the leading bank in the banking system in Israel, we have made a decision to go through an unprecedented initiative and freeze interest rate increases for over ten thousand customers who, in our estimation, have suffered the highest price increases in recent times. We are attentive to the difficulties of our customers and are proud to be the first in the banking system to go through this process. We will continue to go towards our customers and provide them with additional solutions in the future."
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Dov Kotler
