Question 1

How is the monthly mortgage payment calculated?

Accepted Answer

With a Shpitzer (fixed-payment) schedule the monthly payment is: loan amount × r ÷ (1 − (1 + r)^−n), where r is the nominal annual rate divided by 12 and n is the number of months. For example, a ₪1,000,000 mortgage over 25 years (300 months) at a 4.6% fixed, non-indexed rate: the monthly rate is about 0.383% and the payment comes to ₪5,615. With fixed principal (keren shava) the principal is split evenly across the months (1,000,000 ÷ 300 = ₪3,333) and interest on the remaining balance is added, so the first payment is ₪7,167 and it falls over time. The calculator does this for each track and adds the payments up.

Question 2

What is the monthly payment on a ₪1 million mortgage?

Accepted Answer

It depends on the rate and the term. At 4.6% (close to the Bank of Israel average for fixed non-indexed mortgages, 4.62% in August 2026) on a Shpitzer schedule: ₪6,381 a month over 20 years, ₪5,615 over 25 years and ₪5,126 over 30 years. The longer term lowers the payment by about ₪1,255 compared with 20 years, but total interest rises from ₪531,344 to ₪845,520. Roughly, every ₪100,000 borrowed over 25 years at that rate adds about ₪562 to the monthly payment.

Question 3

What is the difference between Shpitzer and fixed principal?

Accepted Answer

With Shpitzer the monthly payment stays the same (on a fixed, non-indexed track) and in the early years most of it is interest. With fixed principal the first payment is higher and it drops every month, and total interest is lower because the principal is repaid faster. For the same ₪1,000,000 over 25 years at 4.6%: Shpitzer costs ₪5,615 a month and ₪684,571 in total interest; fixed principal starts at ₪7,167, ends at ₪3,346 and costs ₪576,917 in interest. Fixed principal saves interest but needs a higher payment capacity in the first years.

Question 4

How does CPI indexation affect the monthly payment?

Accepted Answer

On a CPI-indexed track the outstanding principal is adjusted for inflation every month, so the payment rises over time. For example, ₪1,000,000 over 25 years at a 3.3% fixed indexed rate (the Bank of Israel average was 3.29% in August 2026) starts at about ₪4,908. If the CPI rises 2% a year, the last payment reaches about ₪8,075 and total payments come to ₪1,908,249 – more than the ₪1,684,571 for the same loan on a non-indexed track at 4.6%. With zero inflation it would cost ₪1,469,885. In the calculator you can change the CPI assumption or switch on the Bank of Israel forecast.

Question 5

What is a mortgage mix and how is its payment calculated?

Accepted Answer

Bank of Israel rules require at least a third of a mortgage to carry a fixed rate, so Israeli mortgages are usually made of several tracks – for example prime, fixed non-indexed and fixed indexed. Each track is a separate loan with its own rate, term and amortization schedule, and the total monthly payment is the sum of the tracks' payments. In the calculator you add a track for each part of the mortgage and see the combined payment and the weighted rate, and you can compare several mixes (for example offers from different banks) side by side. Prime tracks use the current Bank of Israel prime rate.

Question 6

How much mortgage can I take for a given monthly payment?

Accepted Answer

That is the reverse calculation: start from the payment you can afford and work back to the loan amount. For example, a payment of ₪5,615 a month over 25 years at 4.6% supports a mortgage of about ₪1 million. Under Bank of Israel rules the monthly payment may not exceed 50% of disposable income, and financing is capped at 75% of the price of a single home. KamaKama's affordability calculator does this from your income, target payment and equity, including purchase tax.

Question 7

Is the payment shown the payment I will actually pay?

Accepted Answer

It is an estimate, not a binding offer. The bank sets the rate on each track based on your profile, prime, CPI and variable rates can move over the years, and the payment shown does not include life and property insurance. Enter the nominal rate from the bank's offer, and compare several offers before you sign.

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