What Is the Prime Track (מסלול פריים) in an Israeli Mortgage?

The Prime track (מסלול פריים) is a variable-rate mortgage track set at the Bank of Israel's benchmark interest rate plus a fixed margin (currently 1.5 percentage points), typically minus a discount negotiated with your bank. The rate adjusts whenever the Bank of Israel changes its benchmark.

The Prime track can save money when rates fall, but it is the most volatile of the three main tracks — Israeli rates have moved sharply within short windows in recent years. To limit this exposure, Bank of Israel regulation caps the Prime track at a maximum of one-third of your total mortgage.

Why it matters for a buyer: foreign buyers whose income doesn't benefit from Israeli rate cuts are especially exposed to Prime track risk on the upside. Model a rate-increase scenario, not just today's rate, before deciding how much of your mortgage to put on this track.

Source: Bank of Israel benchmark rate decisions; Bank of Israel Directive 329