Chairman of the Knesset Interior Committee, MK Yaakov Asher (UTJ), has issued an urgent call to Finance Minister Bezalel Smotrich and Bank of Israel Governor Amir Yaron to develop an immediate solution to the growing mortgage crisis, following alarming reports of a sharp increase in mortgage payment delinquencies.
Speaking at a conference organized by the Association of Haredi Mortgage Advisors, Asher warned of a looming collapse in the housing finance market. “When you start hearing about a rise in missed payments, that’s already an emergency,” he said. “Tightening financial conditions will only strangle mortgage holders, making it harder for them to repay, and that will push many into insolvency.”
He stressed that the mortgage crisis has the potential to spiral into a wider financial breakdown. “Without a systemic solution, we could see the collapse of an entire market,” Asher cautioned. “If people can’t manage their mortgage repayments, no other economic policy will matter, because there will be no functioning mortgage market left to implement policy in.”
While emphasizing that he does not seek to interfere with the Bank of Israel’s monetary policy, Asher insisted that practical steps can and must be taken to alleviate the pressure on borrowers. “There are complementary tools and solutions available that can help prevent families from financial collapse,” he said.
The concerns about mortgages in the haredi community come alongside the double economic pressures of wartime budget cuts and the continued attempts by other coalition parties to impose sanctions on those who do not serve in the IDF.