Mashkanta 2026: 79.6 billion shekels in real estate loans, a record and the return of the Prime rate

The mashkanta in 2026 is breaking records. According to data from the Bank of Israel, 79.6 billion shekels in real estate loans were granted between January and August, an increase of 13.8% compared to the same period in 2025. The month of August alone accounts for 10.899 billion, a slight decrease of 5.7% month-over-month.

This dynamism contrasts with a real estate market where sales are slowing and several major cities are seeing their average prices drop. How can this paradox be explained, and what does it mean for a borrower?

Bank of Israel Figures

The Association of Mortgage Advisors describes a solid, stable credit market near its highest levels, evolving independently of the weakness in real estate transactions.

Record Lending, Weak Market: The Paradox

According to mortgage advisors, the main explanation lies in the time lag.

In recent years, many new homes were sold with financing incentives: 20/80 payment schedules, deferred payments, interest covered by the developer. In these arrangements, buyers pay little at signing and finance most upon delivery.

Today, these programs are coming to an end. Deals closed in the past are turning into actual mortgages today. Hence this double movement:

- A booming mortgage market, fueled by past transactions;
- A calmer sales market, with new buyers acting cautiously.

This also explains why price statistics don't tell the whole story. See our analysis of developer financing incentives.

The Return of the Prime Rate

Another trend noted by mortgage advisors: borrowers are regaining confidence in the Prime portion and are steadily increasing its share, month after month.

Reminder: What is Prime?

In Israel, the Prime rate is equal to the Bank of Israel's base rate plus 1.5 points. The Prime portion is therefore variable: it decreases when the central bank lowers its rates, and increases in the opposite case. A mashkanta usually combines several portions:

- Prime (variable, non-indexed);
- Fixed rate, non-indexed;
- Fixed rate indexed to inflation;
- Variable rate adjustable every 5 years, for example.

Banking regulations govern the allocation between these portions.

Why this renewed interest

A borrower increases their Prime share when they anticipate stable or falling rates, and want to maintain flexibility: the Prime portion can, in principle, be repaid early without significant penalty.

Advisors, however, remind clients that this trend requires staying vigilant: a variable rate exposes you to higher monthly payments if the context changes.

What This Means for Your Loan

1. Credit Remains Available: Banks are actively financing housing. A solid application will find approval.
2. Bank Negotiation Is Possible: Comparing several banks is still the best way to get good terms. That's the value of a broker.
3. The Split of Loan Segments Matters as Much as the Rate: A poorly structured mix can cost more than a slightly higher rate on a suitable structure.
4. You Need to Test Scenarios: What happens to your monthly payments if the base rate rises by one point? And if inflation accelerates? Try it out with the financing simulator.

Borrowing from Abroad or in Israel

Terms vary depending on your profile:

- Israeli resident buying their sole residence: usually the highest financing ratio, often up to 75% of the property's value;
- Foreign resident or investor: financing ratio generally capped around 50%, with foreign income documents to be translated and certified.

These thresholds are indicative and must be confirmed by a broker according to your exact situation. For French-speaking buyers, our guide mortgage (mashkanta) from France details the steps.

Don't forget the costs added to the price: 18% VAT included for new builds, purchase tax depending on your profile, closing costs of about 10 to 13%. Your down payment must cover these.

With IsraelStart, you are supported by a financing broker, a lawyer, and an architect, in your language, whether you buy from abroad or from Israel, on more than 300 new projects throughout Israel. A personalized, no-obligation assessment helps define your real budget.

Sources and Method

- Ynet analysis of Central Bureau of Statistics (CBS) data, published September 15, 2026.
- Israel Central Bureau of Statistics (CBS) — average transaction prices by city and number of rooms.
- Bank of Israel — real estate credit volumes (August 2026 data).

The prices for the first half of the year are an arithmetic average of the first two quarters, compared to the same calculation for 2025. The number of transactions is not weighted: a small volume of sales can strongly affect a city's average. Indicative figures, to be cross-checked project by project before any decision.