The Ministerial Legislative Committee passed a bill sponsored by MK (Yisrael Beitenu) Orli Levy-Abekasis that would permit one purchasing a home to receive a mortgage of 90% of the property’s value. The treasury is tenacious in its opposition to the bill, which was also opposed by Yesh Atid ministers serving on the committee.

Voting in favor of the bill were ministers from Yisrael Beitenu and Uri Ariel (Bayit Yehudi), Uri Orbach (Bayit Yehudi), Gilad Erdan (Likud) and Limor Livnat (Likud). The bill is set for its preliminary vote in Knesset on Wednesday 26 Marcheshvan.

Treasury officials feel the bill will endanger the economy, especially the stability of the housing market. Supporters of the bill feel it will permit young couple who have not been able to afford a down payment for an apartment today to move ahead and purchase a home instead of continuing to pay rent.

Levy-Abekasis explains that unlike the Zero VAT Bill that was approved by the committee, this bill permits couples without capital to buy an apartment while the Zero VAT situation still compels a buyer to come up with one-third of the cost, only permitting a 66% mortgage. She feels that while they will not have to pay the VAT, the problem is the lack of available income and that is what prevents hundreds of thousands of couples from purchasing an apartment today, not the VAT.

(YWN – Israel Desk, Jerusalem)