Mortgage Loan Tracks

Loan tracks are the building blocks of your mortgage mixture. When we build one, we choose a number of different loans to make it up. Each loan has its own characteristics — the type of indexation, the risk level, the interest cost, and more.

In Israel there are six main loan tracks that banks offer. Click on each track to learn about it in depth:

There are other loans you can use to build a mortgage — for example, a rate linked to the euro. We don't recommend mixing these in, and from our analysis of the thousands of mortgages we've seen so far, these loans are offered by Mizrahi Tefahot Bank only (if you know otherwise, let us know).

Regulatory limits

The supervision of the banking system defines limits on the composition of the mortgage mixture:

• At least 33% of the mortgage mixture must be in the KALATZ, KATZ or ZAKAOT tracks
• At most 67% of the mortgage mixture may be in the Prime, MALATZ or MATZ tracks

These limits are intended to protect borrowers from excessive exposure to interest rate and inflation risks.

How do you choose the right combination?

The choice among the tracks should be based on several considerations: the ability to absorb changes in the monthly payment, the investment horizon, plans for early prepayment, and the level of risk you are willing to take.

There's no "right" or "wrong" track — only a combination that either suits your needs or doesn't. The key is to build an optimal mortgage mixture that combines the different tracks in a way that maximizes the advantages and minimizes the disadvantages. To see how different combinations translate into cost and monthly payment, try our mortgage calculator.

Good luck!