The head of Israel's powerful parliamentary finance committee submitted a bill on Monday that would limit banks' ability to raise mortgage rates after central bank interest rate increases.
The Bank of Israel has raised its benchmark interest rate by 3.15 percentage points to 3.25% since April, with more hikes likely. Monthly mortgage repayments have soared by more than 1,000 shekels ($291), with high inflation an additional factor.
"To ease the financial burden, it is proposed that the interest rate set in a housing loan for the purchase of a single apartment used for living not change," Knesset Finance Committee chairman Moshe Gafni's bill said. (Reuters)