Bank of Israel Considers Extending Restrictions on Contractor Financing Deals

In depth

A temporary directive limiting aggressive financing promotions on apartments is due to expire at the end of the year. The Bank of Israel is conducting staff work on the matter and has not yet made a decision on extending it or on additional steps. According to Finance Ministry data, 45% of apartments sold by contractors in September were sold with financing benefits, the highest share since March 2025.

The Banking Supervisor is expected to publish an update to the existing guidelines next month, which will also address mortgage subsidies and other promotions. Contractors who have sold apartments with financing benefits until now are expected to take another blow.

In response to a Bizportal inquiry, the Bank of Israel said it is considering extending the guidelines and even taking additional steps. The bank has not yet made a decision on the matter.