Mortgage Delinquencies Rise in September After Three Months of Decline
Mortgage payment delinquencies in Israel increased in September to 4.23 billion shekels, after three months of decline. The mortgage market showed strong performance despite lower new loan volumes due to the Rosh Hashanah holiday. Investors took out the largest average mortgages, while subsidized housing buyers took the smallest. October is expected to see a surge in mortgage activity.
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- Mortgage delinquencies rose to 4.23 billion shekels in September after a three-month decline.
- September saw a significant reduction in new mortgage lending due to the Rosh Hashanah holiday.
- Banks' reduced focus on distressed borrowers may have contributed to the rise in delinquencies.
- Investors secured the largest average mortgages, while subsidized housing buyers took the smallest.
- October is anticipated to experience a substantial increase in mortgage activity.
Mortgage payment delinquencies in Israel began to increase again in September, reversing a downward trend observed over the previous three months, according to data from the Bank of Israel. Although the volume of new mortgages taken out in September was significantly lower than in preceding months, totaling 8.66 billion shekels, the mortgage market showed strong performance considering the Rosh Hashanah holiday period, which substantially reduced financial activity and workdays.
The total amount of overdue mortgage payments rose to 4.23 billion shekels in September. This followed a significant decrease in delinquencies during June-August, with August reaching its lowest point since August 2025 at 4.1 billion shekels. It is estimated that the earlier decline was due to banks' intensive efforts to reach agreements with struggling borrowers. However, a likely reduction in banks' focus on distressed clients in September led to the increase in delinquencies.
Analyzing borrower segments, investors took out the largest mortgages in September, averaging 1.26 million shekels. Buyers in the open market who are not investors followed, with an average mortgage of 1.07 million shekels. Those purchasing subsidized housing under the "Apartment Discount" program took out the smallest mortgages, averaging 741,000 shekels.
Looking ahead, mortgage volumes in October are expected to be particularly high due to a backlog of unprocessed mortgage applications from the previous month.
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