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.
Related: Current Interest Rates in Israel.