Mortgage calculator: compare mixes and tracks
A mortgage in Israel is usually a mix of several tracks, each with its own rate, linkage and term, and what it costs depends on how they add up. Moneta's calculator works out the monthly payment and the total repaid for up to four mixes, side by side. The examples below show what moves those figures. They use a ₪1,000,000 loan and example rates, not current offers.
What a mix is made of
Each track is a small loan of its own. These are the main types:
- Prime: the rate moves whenever the Bank of Israel changes its rate.
- Fixed, unlinked: the rate stays the same and the balance only falls.
- Fixed, CPI-linked: the rate stays the same, but the balance rises with the consumer price index.
- Variable: the rate is reset at set points, every 1, 2, 5 or 10 years, with or without linkage.
- Eligibility (zakaut): a track for holders of an eligibility certificate from the Ministry of Construction and Housing.
Spitzer or equal principal
| Method | First payment | Last payment | Total interest | Total repaid |
|---|---|---|---|---|
| Spitzer | ₪5,846 | ₪5,846 | ₪753,770 | ₪1,753,770 |
| Equal principal | ₪7,500 | ₪3,347 | ₪627,083 | ₪1,627,083 |
₪1,000,000 over 25 years at a fixed, unlinked 5%. Spitzer keeps the payment level, so the early payments are mostly interest. Equal principal repays the same principal every month, so it starts ₪1,654 a month higher, falls every month, and costs ₪126,687 less interest over the term.
What a longer term costs
| Term | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 20 years | ₪6,600 | ₪583,894 | ₪1,583,894 |
| 25 years | ₪5,846 | ₪753,770 | ₪1,753,770 |
| 30 years | ₪5,368 | ₪932,558 | ₪1,932,558 |
The same ₪1,000,000 on Spitzer at 5%. Going from 20 years to 30 lowers the payment by ₪1,232 a month and adds ₪348,664 of interest.
What CPI linkage does
| Track | First payment | Last payment | CPI linkage | Total repaid |
|---|---|---|---|---|
| Unlinked, 5% | ₪6,600 | ₪6,600 | ₪0 | ₪1,583,894 |
| Linked, 3.5%, CPI 2% a year | ₪5,809 | ₪8,649 | ₪257,169 | ₪1,712,552 |
| Linked, 3.5%, CPI 3% a year | ₪5,814 | ₪10,560 | ₪416,373 | ₪1,908,779 |
₪1,000,000 over 20 years on Spitzer. A linked track usually has a lower rate, but the index is added to the balance every month, so the payment climbs with it. These totals are in the shekels of each year: a payment 20 years from now buys less than one today, and that is as true of the unlinked loan. Nobody knows the CPI in advance, so try more than one figure.
What the calculator leaves out
The figures are an estimate, and they will not match a bank's schedule to the shekel. They leave out early-repayment fees, mortgage insurance and any opening fees. The Bank of Israel limits how a mix can be built, and Moneta does not check those limits. Your bank's offer is what counts.
Run your own numbers
In Moneta's Mortgage tab, add a track at a time: amount, track type, repayment method, term and rate. Each mix can hold up to 12 tracks, and you can try a grace period, a future rate rise or an early repayment on any of them. Compare then shows up to four mixes side by side, with charts of the payment, the balance left and what each one has cost. It runs in your browser and works offline.
Frequently asked questions
How is a mortgage's monthly payment calculated?
On a Spitzer track it is worked out from the balance, the rate and the months left, so it stays level unless the index or the rate moves it. ₪1,000,000 over 25 years at 5% comes to ₪5,846 a month.
What is the difference between Spitzer and equal principal?
Spitzer keeps the payment level. Equal principal repays the same principal every month, so the payment starts higher and falls, and less interest is paid over the term.
How does CPI linkage change a mortgage?
The index is added to the balance every month and the payment rises with it. On ₪1,000,000 over 20 years at 3.5%, CPI of 3% a year takes the payment from ₪5,814 to ₪10,560.
Will the calculator match my bank's schedule?
Not to the shekel. It is an estimate that leaves out fees and insurance, so your bank's offer is what counts.