Please note: advisory meetings and the service itself are provided in Hebrew only. These guides are here so you can read and understand the topic in your own language.
In the fixed, non-linked track (קל"צ), the interest rate is fixed and the principal is not linked to the CPI. This means you know today exactly how much you will pay every month until the end of the loan. It is the safest track.
Why is its rate higher?
Because the bank takes on all the risk, both inflation risk and interest rate risk. It prices this risk into the rate.
Advantages
- Full certainty about the monthly payment.
- No linkage – the principal only goes down.
- Suits long-term budget planning.
Disadvantages
- A higher interest rate than the other tracks, usually.
- A capitalization fee – if market rates fall and you want to repay or refinance, the bank will charge a fee that can be significant. Early repayment fees
When does it fit?
- Almost every mix needs a fixed component, at least one third under the Bank of Israel rules. The non-linked fixed track is the natural choice for this component. The one-third fixed rule
- For families for whom certainty about the payment matters more than possible savings.
- When you do not plan an early repayment.
A non-linked fixed track for a short period?
You can take this track for a shorter period than the rest of the mortgage, for example 15 years. The monthly payment is higher, but the total interest is significantly lower, and the debt is closed quickly.
Elia's tip: If you plan to sell or repay in a few years, it may be better to put the fixed part in a track you can exit cheaply, or to shorten its term.
This article is general information and is not personal advice or a commitment. Rules, interest rates and taxes change from time to time, so check the current situation and your own figures before any decision.