USD-Linked Mortgage Based on LIBOR

Or, in other words: the simple solution to buying property with a foreign currency income

At a glance
A mortgage that is given and repaid in shekels, where both principal and interest are linked to the representative US dollar exchange rate.
The mortgage is granted for a period of up to 20 years at a LIBOR-based interest rate, plus a predetermined reset margin. The interest rate changes once every six months, in accordance with LIBOR fluctuations.
  
Who can benefit from a USD-linked mortgage based on LIBOR?
  • All those whose income is linked to the US dollar or is paid in any other foreign currency.
  • Investors seeking a loan to finance a property with the intention of leasing it for USD-linked rental payments.
What are the advantages of a USD-linked mortgage based on LIBOR?
The mortgage can be paid off early without incurring a penalty, when providing notice at least 10 days in advance.
 
 

LIBOR (London Inter-bank Offered Rate) is calculated based on estimates from leading London banks and published every business day. This interest rate represents the rate that is charged by banks lending to each other, and is very commonly applied to short-term loans of up to one year.

Provision of credit is at the sole discretion of the bank. Failure to comply with loan repayment may result in interest on arrears and repossession proceedings.

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