For those borrowers looking for US Dollar based loans, LIBOR loans are now available for foreigners as low as LIBOR+1.8% on the ENTIRE loan amount. Being able to take the entirety of the loan in a variable rate represents a tremendous benefit, as most lenders are unable to provide more than 1/3 of the loan in a variable rate. This option is available up to 70% of the value of the property, albeit with a slightly higher rate. The 5-year USD fixed rate (up to a 25 year term) is available at 3.6%. This option provides a great deal of security as it allows borrowers to fix this rate for 5 years. During the last few weeks, rates on shekel loans have been dropping quickly. The most attractive rates on the market in NIS are currently in the range of 5.4-5.8% fixed for 20 years. 30 year fixed rates are in the 6.2%-6.7% range. For clients interested in Prime loans, Prime-1.0% remains the sharpest rate on the market. For more information, call 972-2-567-1349 to speak with one of First Israel’s qualified mortgage consultants.
Israel Mortgage Rate Update
Published December 16, 2011 by Tzvi Shapiro
About the Author: Tzvi Shapiro
Tzvi first came to Israel in 1995 from Passaic, NJ. He completed his B.S. in New York at the Sy Syms School of Business at Yeshiva University before returning to Israel. Prior to co-founding First Israel Mortgage, Tzvi served in numerous managerial and operational roles spanning the banking and financial industries.
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