Prime Rate
BOI rate + 1.5%. Drives the prime track in your mortgage directly.
Historical trend
What is Prime Rate?
The Prime Rate is the Bank of Israel rate + 1.5%. It is not a law: it is a convention Israeli banks set among themselves, and every "Prime" mortgage or loan track is directly indexed to it.
How it affects you
If your mortgage includes a Prime track (most do in Israel), every change in the Prime rate hits your monthly payment instantly. A 0.25% Prime hike adds roughly 13-15 NIS to the monthly payment per 100,000 NIS of Prime-track principal, depending on the remaining term.
How to read this number
Prime is always exactly 1.5 percentage points above the BOI rate. The instant BOI hikes, Prime moves. No lag, no vote.
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Frequently asked
Expand/collapse: Why 1.5% specifically?
A historical convention among Israeli bankers, a markup compensating for risk, equity, and operating costs. The spread has not changed in decades.