Prime Rate Stress Test: What If Rates Rise?
A Prime track looks cheap today — but moves with every Bank of Israel decision. Enter your mortgage balance and see how each rate hike hits your monthly payment.
| Rate shift | New rate | Monthly payment | Monthly delta | Total interest remaining |
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After the math — what do you buy?
FixYourFI computes the foundation. Tickerio screens stocks, analyzes filings, and scores GEMS — the tool for picking the actual securities.
Why test this before it happens
A Prime track is not CPI-linked — a real advantage. But its rate changes with every Bank of Israel decision, roughly every two months. A 3-percentage-point hike (as between 2021 and 2023) raises the monthly payment by roughly 25% on a ₪1M 20-year mortgage.
How much Prime is healthy in a mix
There is no single answer — there is a test: can you pay the bottom row of the table without breaking your cashflow? If yes, Prime is a great tool. If not, it is a risk, not an opportunity. Pragmatic rule: no more than a third of the mix in Prime unless your cashflow comfortably allows it.
What this does not capture
The calculator holds the principal constant across the whole period. In reality the balance shrinks, so a rate hike in year 15 hurts less than in year one. This is therefore a peak-impact estimate — the worst-case monthly payment.
- Israeli Tax Authority — real capital gains tax (25%/30%, ₪240k threshold)
- Bank of Israel — Prime rate
- Israeli Capital Markets Authority — mutual fund oversight