Mashkanta: average rate of 4.38%, Prime at 24%, and indexed below 10% — what summer 2026 loans reveal

The Mashkanta rates in 2026 remain at the heart of buying decisions. The monthly report from the Bank of Israel published this week, analyzed by Globes, confirms that 2026 is a record year for mortgage credit. But the most useful information for a borrower lies elsewhere: how Israelis now structure their loans.

Whether you are borrowing as an Israeli resident or from abroad, these trends are a useful reference point for discussions with your bank and broker.

August Figures

The volume remains exceptional, notably because many homes sold in recent years with deferred schedules are now being delivered and financed. We explained this in Mashkanta 2026: The Record Year.

What’s Happening with Rates

The weighted average rate edged up slightly in August, reaching 4.38%. Credit advisors point out that it remains relatively low, after a cumulative drop of 0.18 percentage points since January.

However, an advisor interviewed by Globes adds some nuance: the data arrives with a delay. The recent rise in bond yields and bank offers is not yet fully reflected. For 10 to 15-year indexed tranches, he already notes an increase of more than half a point.

Practical takeaway: the conditions shown in statistics may not be the ones you’ll get tomorrow. Request up-to-date, real offers.

Prime Regains Ground

The Prime tranche now accounts for 24% of new loans, compared to 22% the previous month, at the expense of the non-indexed variable tranche revised every five years.

Reminder: Prime is equal to the Bank of Israel's base rate plus 1.5 points. After several base rate cuts this year, some borrowers are betting on further decreases. Prime also has the advantage of usually being repayable early without significant penalties.

Another advisor puts things in perspective: in the past, Prime often made up the maximum allowed in a loan. Today, the share of variable rates in new loans is generally around 20 to 25%.

The Non-Indexed Fixed Rate: A Safe Haven

The underlying trend is a preference for the non-indexed fixed rate (kalatz). Borrowers are willing to pay a “security premium,” an initially slightly higher rate, in order to lock in their monthly payments and protect themselves from rising inflation or interest rates.

For a buyer living abroad and earning income in another currency, this predictability has particular value: currency risk already exists, so it is often better not to add interest rate risk on top of it.

The Shunned Indexation

In August, the share of loans indexed to the price index fell below 10% for the first time. "Only those who need it take indexed loans," summarizes an advisor.

The reason: in an indexed tranche, even with a low nominal rate, every increase in the index raises both the outstanding principal and the monthly payment. After a period of high inflation, borrowers have become more cautious.

How to Structure Your Mashkanta in 2026

1. Start with your repayment capacity, not the rate. What happens to your monthly payment if the base rate increases by one point? Test it with the financing simulator.
2. Spread the risk across several tranches: a base with a non-indexed fixed rate for security, a Prime portion for flexibility, and possibly a variable tranche.
3. Compare several banks: offers can vary significantly for the same profile. That's the broker's job.
4. Consider early repayment: if you expect a cash inflow (such as selling a property abroad), prioritize tranches that can be repaid without major penalties.
5. Include additional fees in your down payment: 18% VAT included in the price of new properties, acquisition tax depending on your profile, closing costs ranging from 10 to 13%.

Financing ratios also depend on your status: higher for a sole residence in Israel, generally capped around 50% for foreign residents or investors. To be confirmed on a case-by-case basis. See also mashkanta from France.

With IsraelStart, a broker, a lawyer, and an architect support you in your language, whether you are buying from abroad or from Israel, across more than 300 new projects throughout Israel. A personalized, no-obligation assessment helps you define your actual budget.

Sources

- Globes, analysis of the monthly report from the Bank of Israel on housing loans for August 2026 (21/09/2026).
- Bank of Israel, housing credit statistics.

Figures and decisions reported by the Israeli economic press, reworded and put into perspective by the IsraelStart editorial team. Indicative information, to be confirmed with a lawyer, broker, and expert before any decision.