Clients that the bank likes to give mortgages toOne way to get a good mortgage from the bank is to be a good customer: a customer the bank perceives as "low-risk" and therefore can be confident will repay the loan. But what makes a customer a good borrower? Read more »
Loan Report – Loan Details by Account Existing loans report, if any: balance, end date, and monthly payment. Here too, a PDF file or a scanned bank paper should be provided. If you have any loan in your bank account, the bank will ask to see a loan report. This report... Read more »
Letter of IntentA letter of intent is a letter provided by a bank or other entity that has a mortgage on an apartment, stating that in exchange for receiving a certain sum of money, the entity will remove the mortgage. The letter also details how the money should be transferred for the mortgage to be closed. Read more »
Mortgage during maternity leave and postpartumSome of the tests a bank conducts for mortgage approval are related to the borrower's income. It happens that the mortgage is taken out close to or after maternity leave. For an employee on maternity leave, payslips cannot be presented. For a self-employed person, the bank wants to know the… Read more »
The Complete Guide to Working with a Mortgage AdvisorWhat does a mortgage advisor do, when to see a mortgage advisor, how to trust a mortgage advisor's interest rates, and how to choose one, how much it costs and when to pay. All the important questions before mortgage consulting Read more »
Mortgage collateralAfter signing a mortgage and before receiving the funds, several tasks must be completed. This article will detail the necessary tasks to save you time, effort, and the risk of contract breach. Read more »
The 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 lessons that can be learned from it regarding regulation in general. Read more »
On insurance, unnecessary insurance, and saving money on insuranceInsurance and unnecessary insurance Read more »
Notarized Power of AttorneyWhat is a notarized power of attorney and why is it needed when taking out a mortgage? Read more »
Tax Authority Form - Reporting for Property TaxWhat is a Capital Gains Tax Clearance Certificate? Read more »
Mortgage Refinancing Guide: What It Is, When to Refinance, and How to Do ItSteps for Mortgage Refinancing Before diving into what mortgage refinancing is and detailing each step, here are the steps you need to take to refinance your mortgage: Decision to conduct a check. Whether it's worthwhile to refinance. It is recommended to perform this check once every two to three years. Read more »
Mortgage RequirementsConditions for obtaining a mortgage in terms of borrowers, income, and the property. Check when certain actions are mandatory before signing the purchase agreement to avoid breaching the apartment purchase contract. Read more »
Borrower's detailsTo make the process of negotiating your mortgage terms as efficient and simple as possible, I have developed a special data form that collects all the necessary data and documents for mortgage approval. I know that a large part of the data... Read more »
7 things you shouldn't do before taking out a mortgageBanks give good mortgages to good borrowers. Here are a few things to avoid (and what to do) to be a good borrower in the eyes of the bank and get the optimal mortgage for you. Read more »
Taking out a mortgage in July-AugustWhat should you do if you need to take out a mortgage in the summer months, when due to the summer vacation there are fewer bankers but high demand? Read more »
CollateralizationWhat is a guarantee conversion document that the bank requires before releasing mortgage funds? Read more »
Efficient mortgage processWhat should I do when I need a mortgage? Before looking for an apartment: 1. Learn about mortgages. There are many sources of information about mortgages. Avoid banks and bankers while learning. Bankers are in conflict of interest with you. The more you pay... Read more »
I'm afraid of being laid off, so I'm taking out a low-payment mortgage.Does a high return increase a mortgage borrower's confidence or the borrower's risk? A nice couple approached me; both partners work in high-tech and earn about 30,000 NIS net per month. They requested a mortgage of… Read more »
Complaints against banks 2013Last week, the Supervisor of Banks published the summary of complaints against banks in 2013. The supervisor's summary reveals a lot about the areas where banks erred in their dealings with customers. In this article, I will review banks' mistakes and misrepresentations on the subject… Read more »
Bank of Israel New DirectivesLast week (April 30, 2014), the Bank of Israel issued three new directives regarding mortgages and clarifications to previous directives. Since July 2011, the Bank of Israel has issued directives and instructions concerning mortgages several times. The Bank of Israel's directives are binding on all banks, therefore… Read more »
Take out a mortgage today or wait?Last week, the Bank of Israel announced a quarter-point (0.25%) cut in the prime rate. With a prime-rate mortgage, the interest rate is recalculated every month, so this cut has an immediate effect on the prime portion of the mortgage, even for mortgages… Read more »
They already approved our mortgage…This weekend I received an email that contains several common mistakes made by many: This email proves to me (again) that I have a lot of work ahead of me and a large public that would benefit from increasing its knowledge base. Results of ignorance on this subject... Read more »
New Mortgage - Bank Contact InformationFollowing the article on starting the mortgage process, here are the phone numbers for the banks' mortgage sales centers. As a general rule, 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... Read more »
Circumventing Bank of Israel restrictions on credit for investment apartments In October 2012, the Bank of Israel dropped a "bomb" on the mortgage world. Hoping to reduce demand for apartments and consequently apartment prices, the Bank of Israel imposed restrictions on taking out mortgages. The details of the restrictions can be read in the article I wrote about... Read more »
Bank of Israel directive on maximum financing percentage11/6/2012 At the end of October, the Bank of Israel published new guidelines limiting the percentage of financing available to a home buyer from the bank as a mortgage. Click here to read the Bank of Israel's directive. According to the Bank of Israel's directive, home buyers will be divided into three... Read more »
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? Real estate investment is a profitable investment that allows for passive income, and by investing in real estate, each of us can organize... Read more »
The importance of a first meeting at the bankAlmost everyone who intends to take out a mortgage has also been through the experience of a job interview. When we go to a job interview, we prepare for various questions and prepare answers that we believe will improve our chances of getting the desired position. A meeting… Read more »
What is the problem with the bank's mortgage "advisor"?I recommend ignoring the bank's "mortgage advisor" title. Instead, call them a "salesperson" or "seller" for the bank. What's the problem with that? Where do I even begin. Read more »