From parental lien to debt deferral for a decade: Financing deals are back, and they are much more aggressive
In an attempt to revive the sluggish housing market, Aviv Melisron and Gindi Holdings launched aggressive financing deals this week: pledging an existing property to finance the down payment, and deferring a payment of 900,000 shekels for ten years. Experts warn of increased leverage and risk, and the Bank of Israel is not responding.
Two major construction companies, Aviv Melisron and Gindi Holdings, launched particularly aggressive financing deals this week in an effort to stimulate the sluggish housing market, where about 85,000 new apartments await buyers. Aviv Melisron offers buyers to pledge an existing property to finance the entire down payment, while bearing the interest costs until occupancy. Gindi offers a deferral of a 900,000 shekel payment for ten years after occupancy, without interest or indexation, through a balloon loan from Bank Leumi or Mizrahi Tefahot. The deals are mainly aimed at projects in high-demand areas such as Herzliya, Tel Aviv, and Givatayim. Experts warn of increased leverage and risk for buyers, noting that the Bank of Israel, which imposed restrictions on financing deals in March 2025, is currently not responding to developments. Mortgage advisor Yonatan Berliner warns that loans may be classified as loans for any purpose after occupancy, under less attractive terms. The Bank of Israel had no comment.