Unlocksy — The Key to Your Home

One of the more confusing parts of getting a mortgage in Israel, especially if you're used to a single fixed-rate loan from another country, is that Israeli mortgages are almost always split across several different meslulim (tracks), each with its own rules. Understanding the main ones will make your bank meeting far less overwhelming.

Prime Track (Ribit Prime)

This track is pegged to the Bank of Israel's prime rate plus a margin set by your bank, so your payment moves up or down as the Bank of Israel changes rates. Banks are limited in how much of your total loan they can put on this track — typically up to two-thirds. The upside: you can usually repay this portion early without penalty, which makes it useful if you expect to have extra cash to put toward the loan later.

Fixed Rate, Non-Linked (Ribit Kvuah Lo Tzmuda)

Exactly what it sounds like — a fixed interest rate for the life of that portion of the loan, with no link to inflation. Your payment on this track stays completely predictable. The tradeoff is that paying it off early can trigger an early-repayment penalty (oss peira'on mukdam), calculated based on how interest rates have moved since you took the loan.

Fixed Rate, CPI-Linked (Ribit Kvuah Tzmuda Madad)

This one trips people up: the interest rate is fixed, but the loan's principal balance is linked to the Consumer Price Index (the madad). So even though the rate itself doesn't change, your monthly payment can still rise over time if inflation does — because you're effectively paying interest on a growing principal. It often comes with a lower headline rate than the non-linked fixed track, which is part of why banks like offering it.

Variable Rate Tracks (Ribit Mishtana)

These sit between prime and fully fixed — the rate resets periodically (commonly every five years) rather than daily, and can be linked or non-linked to the CPI. They offer a middle ground: more rate stability than prime, more flexibility than a fully fixed track.

Why Banks Mix Tracks

A typical mortgage might be split roughly a third prime, a third fixed non-linked, and a third fixed linked — though your bank will propose a mix based on your risk tolerance and financial picture. The logic is diversification: a single-track loan leaves you fully exposed to whatever that track does; spreading across tracks balances predictability against flexibility and cost.

Before You Sign

Get an ishur ekroni (pre-approval) from more than one bank and compare the actual track mix and rates they offer — they can vary meaningfully. A mashkanta (mortgage) advisor can also help negotiate and structure the mix, often for a fee that pays for itself in better terms. Our Mortgage & Affordability Calculator is a good starting point for figuring out roughly what you can afford before those conversations.