In 2023, the Bank of Israel implemented a significant benchmark interest rate hike. This resulted in a sharp increase in mortgage payments, impacting individuals who hold mortgages and loans.
In an effort to curb the upward trajectory of housing prices, policymakers in Israel are directing their attention towards an often-overlooked aspect of the homebuying process: mortgages. Unlike many other countries where banks cover over 90% of a home loan, Israeli regulations by the Bank of Israel cap lender coverage at 75%.
The Buy-Now-Pay-Later model has witnessed robust growth in Israel, bolstered by the burgeoning e-commerce sector. Over the past year, several local credit card issuers have started providing consumers with more Buy-Now-Pay-Later options.
House prices in Israel continued their upward trajectory throughout 2023. According to the Central Bureau of Statistics, major Israeli cities witnessed an average 10% increase in house prices year-on-year, despite a decrease in buyer demand.
Looking ahead, during the forecast period, it is anticipated that interest rates will continue to rise, guided by the central bank's policies. These aggressive interest rate hikes have rapidly increased the financial burden on mortgage and loan holders, with a growing number of consumers struggling to meet their monthly payments.
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Understand the latest market trends and future growth opportunities for the Consumer Lending industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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Consumer Lending
Aggregate of Consumer Credit and Mortgages/Housing. Gross Lending: The total value of loans advanced by institutions in a given year; data refers to single year only. Outstanding Balance: The collective amount owed by borrowers at the end of a given year; data refers to the cumulative impact of debt.
See All of Our DefinitionsThis report originates from Passport, our Consumer Lending research and analysis database.
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