Israeli mortgage offers often include confusing terms: prime, fixed unlinked, variable every five years, CPI-linked and more. The practical question is simple: what can make your monthly payment or remaining balance change?
Prime Track
A prime-linked track changes with the Bank of Israel rate environment. It is usually flexible, but the monthly payment can rise when rates rise.
Fixed Unlinked
A fixed unlinked track gives more certainty: the payment is known in advance and the principal is not linked to CPI. It may start at a higher rate, but provides stability.
CPI-Linked Tracks
In CPI-linked tracks, the principal can rise with inflation. The initial payment may look attractive, but inflation affects both the balance and future payments.
No Track Is Perfect
A strong mortgage mix spreads risk. Some stability, some flexibility and sometimes a part designed for future prepayment can make sense.
Use the mortgage simulator to compare tracks and see the monthly effect.