After three months of decline, mortgage arrears are climbing again

Mortgage payment arrears in Israel rose in September to 4.23 billion shekels, after three months of decline. The volume of new mortgages stood at 8.66 billion shekels, relatively low due to the Tishrei holidays. Investors took the highest mortgages, averaging 1.26 million shekels.

Mortgage payment arrears in Israel rose again in September 2026, after three months of decline, totaling 4.23 billion shekels, according to Bank of Israel data. In August, arrears stood at 4.1 billion shekels, the lowest level since August 2025. The volume of new mortgages taken in September was 8.66 billion shekels, significantly lower than previous months, but considering the Tishrei holidays which reduced working days, the market showed strong performance. Investors took the highest mortgages, averaging 1.26 million shekels, followed by free-market buyers with 1.07 million shekels, and discounted apartment buyers with 741,000 shekels. The article estimates that the previous decline was due to intensive bank handling of arrangements with customers, and that the September increase stems from a reduction in this handling. It is also estimated that the volume of mortgages in October will be high due to accumulated applications.