Prime-linked borrowing accounted for nearly a quarter of the money advanced for Israeli housing purchases in October, its highest share since April 2023. The Bank of Israel’s November 11 data also contains a less obvious signal: although the unadjusted lending total rose, lending fell 1.9% from September after seasonal adjustment.
| Measure | October result |
|---|---|
| Housing-purchase credit | NIS 9.28 billion; up 7.1% from September |
| Seasonally adjusted credit | NIS 10.09 billion; down 1.9% from September |
| Prime category, excluding bullet and balloon loans | NIS 2.27 billion; 24.5% of total purchase credit |
| CPI-linked credit | NIS 879 million; 9.5% of total purchase credit |
Semerenko Group calculated the comparisons from the Bank’s monthly housing-credit workbooks and official statistical series. The figures measure money advanced, not the number of borrowers or newly signed home purchases.
What changed in the mortgage mix?
The Bank’s prime category increased to NIS 2.27 billion in October from NIS 1.99 billion in September. Its share of total housing-purchase credit rose from 23.0% to 24.5%. Comparing the monthly workbook entries confirms that October’s share was the highest since April 2023, when it stood at 26.1%.
There is an important boundary to that calculation. The prime numerator excludes bullet and balloon loans, while the denominator includes all housing-purchase credit. It does not mean that a quarter of borrowers took an entirely prime-linked mortgage: an individual loan can combine several tracks.
CPI-linked lending moved up more modestly, from 9.1% of the total in September to 9.5% in October. That remains well below its 15.1% share in October 2025. The two categories expose households to different risks: a prime track has a variable interest rate; a CPI-linked track adjusts the debt principal with inflation.
Why did lending rise in one measure and fall in another?
The unadjusted NIS 9.28 billion total was 7.1% higher than September and 36.6% higher than October 2025. Those are valid comparisons of the money actually advanced in each month, but the calendar complicates them. Yom Kippur and Sukkot fell in October last year; most of the autumn holiday period fell in September this year.
The Bank’s seasonally adjusted series, which accounts for recurring calendar patterns, gives a different monthly comparison: NIS 10.09 billion in October against NIS 10.28 billion in September, a 1.9% decline. Adjusted lending was still 19.2% above October 2025. The adjustment is a statistical estimate, not an additional pot of loans.
Our reading is that October shows a clear change in how borrowing was structured, alongside a more restrained monthly lending picture than the raw increase suggests. Neither series alone establishes that new home sales have recovered. The data includes refinancing between banks, excludes refinancing within the same bank, and can reflect funds drawn for purchases agreed earlier.
What does this mean for buyers and sellers?
A larger prime share makes future interest-rate movements more relevant to the payments on that portion of new borrowing. It does not establish that rates will fall or that prime is the right choice for a particular household.
The Bank of Israel’s mortgage comparison guidance explains why borrowers should compare the projected overall cost and highest expected monthly payment, rather than just an initial rate. Our English guide to mortgage tracks explains the differences, and the bank-comparison guide sets out how to compare offers.
For sellers, the practical distinction is between credit flowing through the banking system and a specific buyer being ready to complete. A national lending increase is no substitute for checking the buyer’s financing timetable. For buyers comparing homes, keep the property budget tied to an actual bank offer rather than a hoped-for future rate cut.
Sources
- Bank of Israel, housing-purchase credit by indexation base, Table XIV-11, updated November 11, 2026.
- Bank of Israel, unindexed housing-purchase credit and prime component, Table XIV-11.2, updated November 11, 2026.
- Bank of Israel, housing-credit statistical dataset, raw and seasonally adjusted total series, retrieved November 15, 2026. Workbook amounts are in millions of shekels; dataset amounts are in thousands.
- Calcalist, October’s prime-mortgage share and lending figures, November 11, 2026.
Common questions
Did Israeli mortgage lending increase in October 2026?
Unadjusted housing-purchase credit rose 7.1% from September to NIS 9.28 billion. The Bank of Israel’s seasonally adjusted measure fell 1.9% to NIS 10.09 billion.
Did a quarter of borrowers choose a prime-only mortgage?
No. The 24.5% figure is a share of money advanced, using the Bank’s prime category excluding bullet and balloon loans. It is not a count of borrowers or whole mortgages.
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