National Insurance approval according to Chapter 9When taking out a mortgage, the bank examines all of the family's income. If there is a disabled person in the family (child or adult) who receives a pension from National Insurance, this pension is part of the family's income for the mortgage's needs. Sometimes the bank will request approval from National Insurance for the pension... Continue reading »
Mortgage for people with life-threatening disabilitiesPrefer to hear and see? At the bottom of this article you can see the video version. One of the things to do before getting a mortgage is life insurance and home insurance – mortgage insurance. Life insurance guarantees that if one of the spouses passes away… Continue reading »
Letter of intentA letter of intent that serves as evidence of the bank's intention to close the mortgage if it receives a specified amount of money Continue reading »
Opposite of oppositeA reverse mortgage is a mortgage that can be taken out by adults who already own an apartment. This mortgage is called reverse because it works the opposite of a regular mortgage. Below is the full article and for those who prefer a video: Table of Contents Who is a reverse mortgage suitable for? Who gives a mortgage… Continue reading »
How does the bank check how much we earn per month?As part of checking your ability to pay your mortgage, the bank checks your monthly income. There are various rumors circulating online about how the bank examines income and the bank's attitude towards income in terms of mortgage repayment. In this article, I will clarify the issue. Continue reading »
Not just a mortgage: How to finance the purchase of an apartment?There are many ways to finance the purchase of an apartment, and a mortgage is just one of them. These are additional ways to finance at least part of the purchase of the apartment. Continue reading »
Confirmation of mortgage company rightsOn the approval of the rights of a mortgage company Continue reading »
Self-construction diary of a private houseSelf-construction diary of a house in Tel Yosef Continue reading »
Confirmation of land rights in a kibbutzA certificate of rights is a document that specifies who has rights to a particular real estate property. The certificate of rights can be registered in various places, such as the Israel Land Authority, the Land Registry, the Civil Administration (for properties in Judea and Samaria), a mortgage company, or in our case, a kibbutz. No… Continue reading »
How to choose the optimal mortgage for you?Asking “We earn 20,000 NIS and buy an apartment worth 2 million with a mortgage of 1 million. What is a good mortgage offer for me?” So let’s talk about what an optimal mortgage is. Continue reading »
Equal Fund vs. Equal Return (Spitzer): Short and to the pointIn short: repay your mortgage using the Spitzer method (equal repayment) and not the equal principal method, no matter what. Continue reading »
Bank of Israel's mortgage reformAt the end of January 2022, the Bank of Israel's mortgage reform was approved and will take effect in August 2022. In this article, I will review the reform, its advantages, disadvantages, and things that can be learned from it about regulation in general. Continue reading »
Producing a mortgage balance report – Mizrahi TefahotA mortgage balance report is a report that allows you to examine the feasibility of refinancing your mortgage or paying off your mortgage early – closing part or all of your mortgage by depositing money into it. To generate a mortgage balance report – a balance report… Continue reading »
Direct Financing Enters the Mortgage Sector6/29/2019 In 2019, Yashir Finance Company, a subsidiary of Yashir Insurance, began providing mortgages, thus joining the banks and the Clal insurance company, which have been providing mortgages for several years. Insurance companies, by their very nature, are constantly accumulating capital, which they will need… Continue reading »
Mortgage for a single parent/divorced womanMany single or divorced women think they won't be able to get a mortgage and therefore don't try at all or come to the bank from a position of weakness and pay dearly for it. Everything in this article is true for both sexes, but this time I chose to write... Continue reading »
To be close or not to be close, that is the question.One of the most common misconceptions is about the relationship between the index and interest rates. For example, many people think that an unlinked loan with a 4% interest rate is equivalent to a linked loan with a 3% interest rate if there is an index of one percent. Questions like the one below… Continue reading »
Notarized power of attorneyWhat is a notarized power of attorney and why is it needed when taking out a mortgage? Continue reading »
Siblings' affidavit for downloadOn a sibling affidavit that must be brought to the bank as part of the process of obtaining an eligibility loan Continue reading »
Balances reportA balance report is a report that shows the balances we have in each of the bank's savings, investment, and credit channels. In this report, we can see how much money we have in current accounts, deposits, securities, loans, etc. There's nothing to stress about... Continue reading »
Approval in principle for the mortgageWhat is a mortgage approval in principle and what is its importance? When will this approval save you hundreds of thousands of shekels? Continue reading »
A guide to mortgage recycling: what it is, when to recycle and how to do itSteps to Recycling a Mortgage Before we dive into what mortgage recycling is and the details of each step, these are the steps you need to go through on the way to recycling a mortgage: Deciding to perform an inspection to see if recycling is worth it. It is recommended to perform the inspection once every two to three years.… Continue reading »
Income Tax Assessment – Accountant's StatementIncome tax assessment and its relationship to the mortgage of the self-employed. What does a self-employed person need to do to get a mortgage? Continue reading »
Mortgage or mortgageIs it correct to write משפאלה or משפאנה? That is, to end in an aleph or a בה? The Academy of Language has determined that Aramaic or Greek words in the feminine form that end in an aleph will end in ה. For example (instead of עמדעל) – box, deal, version, table, and more. Continue reading »
Average mortgage interest ratesThe Bank of Israel publishes average mortgage interest rates every month. The Bank of Israel report is indeed severely flawed due to the mixing of loans resulting from purchases versus refinancings, an insufficient breakdown by financing percentage, customer types, or… Continue reading »
Documents required for mortgage executionList of documents that must be issued to obtain a mortgage: what each document is, why it is needed and how it is issued. Including a list of documents by type of transaction. Continue reading »
Eligibility Loan – The Good, the Bad, and the UglyAn eligibility loan is a mortgage route with preferential terms. Who is it suitable for? What's good and what's bad about it? Why does the banker avoid telling you about it? And also the history and documents for an eligibility loan Continue reading »
Mortgage for same-sex couplesMortgage for same-sex couples Many think of mortgage as part of our declaration as a family: friendship, marriage, mortgage, children, and so on… In this article I will try to expand the scope a little in several directions. First of all, you don't have to mortgage. You can definitely get married and not… Continue reading »
Confirmation of military service/national serviceAn eligibility loan is a component of a mortgage that is not provided by the commercial bank like the rest of the mortgage, but by the Ministry of Housing. The bank acts as a conduit for transferring the loan funds from the Ministry of Housing at the time of its establishment and a conduit for repaying the monthly payments… Continue reading »
Israel Lands Authority (Administration) Rights ApprovalThe rights of a person or company in any real estate property are registered in Israel with several different institutions, together or separately. The land for this purpose is registered with the Israel Lands Authority (formerly the Israel Lands Administration), in the Land Registry Office or in the Jordanian Land Registry Office for Judea and Samaria. The apartment… Continue reading »
Conversion of guaranteeWhat is the collateral conversion document that the bank requires before releasing the mortgage funds? Continue reading »
videoActor and real estate man Yuval Schwartzman came to interview me after two cups of herbal tea and two glasses of limoncello that my wife made. He left: Get to know us better: something a little different... A lecture for children as part of a birthday party... Continue reading »
Bank of Israel – Restrictions on granting housing credit – Mortgages – Procedure 329Restrictions on granting housing loans Supervisor of Banks: Proper Banking Management [5] (10/16) p. 1 – 329 Definitions 1. Restrictions on granting housing loans “Housing loan” “Variable interest housing loan” “Residential apartment” … Continue reading »
Mortgage for any purposeMost mortgages are given for the purpose of purchasing an apartment or building a house. However, the term mortgage is not derived from the purpose of the loan but from the collateral for the loan. Any loan in which an apartment is pledged to secure the repayment of the loan is called a mortgage. A mortgage can also be taken out for the purposes of… Continue reading »
Balloon Loan – BullittWhat is a Bullet Loan? This loan bears the foreign name Bullet (bullet, ball) and represents a loan in which each month we pay only the interest and the debt is paid in one payment at the end of the period. This loan is… Continue reading »
I'm afraid of being laid off, so I'm taking out a low-interest mortgage.Does a high repayment increase the security of a mortgage borrower or the risk of the borrower? A nice couple came to me, both of whom work in high-tech and earn about 30,000 NIS net per month. They requested a mortgage of… Continue reading »
The return of index-linked bondsIn the past, I have often recommended avoiding index-linked loans. Index-linked loans have a significant disadvantage: the risk of increasing debt along with an increase in monthly repayments. Another problem with index-linked loans is that most borrowers do not understand how much they will actually pay… Continue reading »
Bank customer service centers for mortgage recyclingTefahot Mortgage Recycling We will be happy to assist you by calling *8860, extension 4, then 3, or by fax: 03-5686982, Sunday-Thursday, 8:00-21:30, and Friday, 8:00-13:00. The Leumi Customer Service Center is open Sunday-Thursday, 8:30-17:00. The direct phone number to it is:… Continue reading »
The Bank of Israel is fighting the phenomenon of economic suicides8/22/2013 The last few years have been characterized by very low interest rates and inflation. At the same time, housing prices have risen significantly. These two trends, combined with advertising campaigns by banks and developers and the support of bank officials who lack knowledge or responsibility, have created the phenomenon of economic suicides: people who take… Continue reading »
Pay for 9 years and the debt did not decrease – pay for two years and the debt increasedHello, I believe that increasing the public's knowledge about mortgages and real estate is one of the things that can improve the financial situation of families in Israel in the most significant way. As part of this activity, I manage the real estate forum on the Tapuz website. This… Continue reading »
Interest rate reductions and youThis morning we were informed of another interest rate cut, the second in the past month. The Bank of Israel reduced the interest rate by 0.25% after a similar reduction about two weeks ago. The Bank of Israel's interest rate reduction, which is used to calculate the prime interest rate, has a major impact on… Continue reading »
New mortgage – contact details for banksFollowing on from the article on starting the mortgage process, below are the phone numbers for the banks' mortgage (sales) centers. Generally, the center's interest is to get you to the branch as quickly as possible to sell you a mortgage. Your interest is to postpone… Continue reading »
New Bank of Israel directiveIn recent years, the volume of housing loans (mortgages) given by banks in Israel has increased significantly. As a rule, banks roll over every shekel deposited with them several times. Let's say a person purchases an apartment. For the purpose of the purchase, he takes out a mortgage of half a million shekels. The seller of the apartment… Continue reading »
Lecture on investment apartments and saving on mortgage repaymentsWho among us wants to grow old with dignity? Who wants to receive a high pension, to live at a higher economic level than their salary allows? Investing in real estate is a profitable investment that allows for passive income, and by investing in real estate, each of us can organize… Continue reading »
Maybe you don't need a mortgage at all?I spoke with a potential client. For convenience, we will call him Yam (a pseudonym). Yam explained to me that he needed a small mortgage that would be repaid in five years. I suggested that he not take out a mortgage at all. Instead of a mortgage, I recommended that he take out a regular loan.… Continue reading »
How to get the mortgage path you want and not the bankHello [[there]], in the guide to an effective mortgage that I wrote (click here) there is a recommendation to choose tracks that are not index-linked. You can read the reasons for this in the guide. However, banks usually impose at least 30% on a linked track (for those who come not even ready… Continue reading »
Grace Loan is not charity.I have been asked many times about the possibility of starting to pay on the mortgage in a few years. The motivation for such a step is if we believe that in a few years we will have higher income or lower expenses. For example: we bought an apartment from a contractor,… Continue reading »