Israel’s Bank Hapoalim freezes mortgage

Israel’s Bank Hapoalim will not pass on to customers the central bank’s next increase to interest rates, it said on Sunday, citing the struggles of homeowners faced with higher mortgage payments amid a broad spike in the cost of living.
The Bank of Israel has raised its benchmark interest rate to 3.25% from 0.1% since April, resulting in a steep rise in mortgage payments even before a further increase expected on Monday to a 14-year high of 3.75%.
Hapoalim, one of Israel’s two largest banks, said customers who have difficulty making mortgage payments will not have to pay extra and that it will leave the prime rate for them at 4.75% for now.
The move is valid for one year for existing customers that have a mortgage linked to the prime rate and meet a number of criteria, the bank said.
Hapoalim Chief Executive Dov Kotler put the number of customers who would benefit from the freeze at more than 10,000.