Prime Minister Benjamin Netanyahu is advancing a plan to use increased tax revenues from banks to provide relief to homebuyers facing sharply higher mortgage repayments. The proposed legislation would redirect approximately NIS 3 billion annually from bank profits directly to affected homeowners, with the largest benefits going to those with apartments priced just above the national average. The plan is designed to phase out as interest rates decline, but key details, including eligibility and benefit levels, are still under discussion.

The Ministry of Finance opposes the initiative, raising legal and ethical concerns about allocating tax money to specific groups and questioning the state's role in covering public mortgage losses. The proposal also faces criticism regarding distributive justice, as it would favor current homeowners over those seeking to buy in the current high-interest environment. Political uncertainty remains over whether the plan will be included in the 2026 budget.