Data published on October 15 by the Bank of Israel indicates that the mortgage market continues to operate at a high pace. In September, mortgages amounting to NIS 8.53 billion were taken, a figure 22% higher than the mortgages taken in August of last year and 55% higher than those taken in September of the previous year, when the Tishrei holidays affected mortgage activities, making the comparison somewhat inaccurate.
This is the second-highest mortgage volume in the past two years, with only July surpassing it, reaching NIS 9.065 b. Compared to the monthly average over the past 12 months, which stands at NIS 6.4 b. mortgage volume in September rose by 32%.
Another interesting finding from the Bank of Israel's data shows a slight decrease in the volume of contractor and “balloon” loans taken in September, totaling NIS 1.36 b. compared to record levels in July and August, each exceeding 1.4 billion shekels in such loans.
It should be noted that, in August, the Bank of Israel announced increased scrutiny on balloon loans, advising banks that provide contractor loans to manage the risks associated with this loan mechanism and to give clear disclosures to clients on its implications when taking out these loans.