Discount Bank "freezes" the increase in mortgage payments for customers who have difficulty paying the monthly repayment due to increases in Bank of Israel interest rates and the increase in the index.
This, against the background of a continuous interest rate increase by the Bank of Israel which has increased since last April from 0.1% to 3.75% today.
In the afternoon (Monday) the Bank of Israel is expected to raise the interest rate once more, by 0.5%.
As part of the move, Discount Bank will allow its customers to reduce the amount of the monthly repayment of the mortgage to the level it was in September 2022 - before the last four interest rate increases, the amount that will be deferred will be returned starting at the end of 24 months, spread over 36 payments, without interest.
In fact, it is a loan to the bank's customers that will be given without interest.
The move is intended to make it significantly easier for the bank's customers who take out the mortgages, and the question is how the Bank of Israel will respond - since the move is contrary to the action of the Bank of Israel, which raises interest rates to cool the economy, slow down growth and consumption.
How will it work?
An amount equal to the increase in the monthly repayment of the mortgage from September 2022 until today will be deposited into the customer's account every month, including the expected interest rate increase today (4 times the Bank of Israel interest rate increase) in an amount of up to NIS 1,000 per month.
The amount will be returned at the end of 24 months, as a loan spread over 36 months without interest or fees, including in the case of early repayment.
The bank says that the move to transfer the loan without interest will be offered to customers starting from the date the mortgage is charged in March 2023 to customers with an existing mortgage in the bank who meet all of the following criteria: • To customers transferring a salary of up to 20,000 NIS to the current account • The loan is
a single apartment that is not for investment
• The loan is paid without lags
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