How to Build the Perfect Mortgage Mix in Israel

Building the right mortgage mix is the single most important decision you will make when taking out a mortgage. In Israel, a mortgage is typically composed of several tracks ("maslulim"), each with different interest rate structures and risk profiles.

The Main Mortgage Tracks

**Prime Track** — The interest rate follows the Bank of Israel prime rate. When the prime rate is low, this is very attractive, but it exposes you to rate hikes. Suitable for short-to-medium term debt.

**Fixed Rate (Fixed) Track** — The interest rate is locked for a period (usually 5, 10, or 20 years). Provides certainty and protection against rate increases, but typically starts higher than the prime rate.

**CPI-Linked Track** — The principal is linked to the Consumer Price Index. If inflation rises, your debt grows. However, the real interest is usually lower. Suitable when you expect stable or low inflation.

The Golden Rule: Diversify

Never put all your eggs in one basket. A common recommendation is to split your mortgage into 3-4 tracks:

Getting Professional Help

An experienced mortgage advisor can run simulations showing how different mixes perform under various economic scenarios. This data-driven approach can save you tens of thousands of shekels over the life of the loan.