On real benefits and "benefits" to stay away fromAgainst the backdrop of the war in Gaza and the destruction of Israeli communities in the Gaza envelope, banks have created several benefits and promotions. The purpose of this article is to sort out real benefits versus marketing offers disguised as benefits that should be avoided. The full list of benefits varies from bank to bank… Read more »
Equal Fund vs. Equal Return (Spitzer): Short and SweetIn short: Repay your mortgage using the annuity method (equal installments) and not the constant principal method, no matter what. 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 »
Mortgage Insurance: Life Insurance and Home Insurance"Mortgage insurance" is a term for two or three insurance policies that must be taken out for a mortgage: life insurance for each of the borrowers and insurance for the apartment being mortgaged. A few things that will save you money: Read more »
Bank of Israel directive regarding mortgaging an existing apartmentThe new Bank of Israel directive regarding mortgage on an existing dwelling Read more »
Calculation of construction input cost indexHow to estimate the future cost of the construction input index and, in general, what is the difference between money we receive/pay today versus money we receive/pay in a year? An important article also for those who currently have no connection to buying an apartment in the previous article about the index… Read more »
Advancing payments to the contractor due to the construction input index could prove to be a very costly mistake.Is it advisable to pay a contractor in advance due to the increase in the construction input index? In this article, I will show that sometimes advancing payments can actually cause a significant loss. Read more »
Mortgage for single parent / divorcedMany single mothers or divorced women think they won't be able to get a mortgage and therefore don't even try, or they approach the bank from a position of weakness and pay dearly for it. Everything stated in this article is true for both genders, but this time I chose to write… Read more »
Tight or not tight, that is the questionOne of the most common misconceptions concerns the relationship between the index and the interest rate. For example, many people believe that a non-indexed loan with an interest rate of 4% is equivalent to an indexed loan with a 3% interest rate if the index is 1%. Questions like the one below… Read more »
Taking out a mortgage you can't afford: Don't lie to yourselfThe lies we tell ourselves are the ones that will crush us financially. Make financial decisions based on data and reasonable assumptions, not on stories. Read more »
Early repayment fee - Discount fee - Early repayment penaltyThis week, on 5/21/2018, I had the honor of representing the public as a delegate of the Association of Housing Finance Advisors (Mortgage Advisors) in the Knesset's Economics Committee. The discussion revolved around a bill to cancel this commission. It should be noted that the professional committee of the association… Read more »
The connection between a 300-meter dive watch and a month of mortgage freedomI saw an advertisement in the newspaper for a men's watch. Among the watch's other features, it was noted that it is water-resistant up to a depth of 300 meters. I have a two-star diving license that allows diving up to a depth of 30 meters. At this depth, there is little... Read more »
A mortgage that tears a family apart: The connection between mortgages and divorceWhen the monthly payment doesn't match the mortgage amount, a financial tragedy can occur. An initial payment that is too low could skyrocket in the future, causing massive financial loss, the loss of one's home, or divorce. Read more »
Is it important to get a low interest rate on a mortgage?Is it worth taking out a mortgage at zero interest? This article shows that interest is not significant for saving on a mortgage. Sometimes, a low-interest or even zero-interest loan is actually the more expensive loan. Read more »
Which bank is offering the best interest rates today?At least once a day I see the question in the title: "Which bank offers the best interest rates today?" This question comes up in calls from potential clients who are debating choosing a mortgage advisor, arrives in my email, or I see it... Read more »
VideoActor and real estate agent Yuval Schwartzman arrived to interview me after two cups of herbal tea and two shot glasses of limoncello that my wife made. Here's what came out:Get to know us better:Something a little different... A lecture for children as part of a birthday celebration... Read more »
It's a shame to recycle after you've paid most of the interest.Here's a secret you already know: every seller wants to sell their goods at a high price. The seller's costs are at the lowest level they've reached after optimizing as best they can. Now, the higher they can sell their goods for... Read more »
I don't know what the index will be in the future, so I'm not referring to it.Can you pay off the mortgage in a few years? My advisory documents are less than beloved by bankers. It makes sense; my advisory document has a built-in conflict with the banker. The banker wants the client to pay as much as possible, I want the client... Read more »
Depressed people are planning a better mortgageHow to avoid cognitive biases when planning a mortgage. A 2009 study by Joseph Furgeson in Australia confirmed what researchers have known for a long time. Despite the desire to think like my wife – think good and it will be good, etc.,... Read more »
Spitzer or James Webb?When planning a new mortgage, two things must be decided: the tracks that will make up the mortgage and the length of each track. The repayment method for each track: equal principal or annuity. Annuity repayment means that theoretically, if the interest... Read more »
Will the bank give you thousands of shekels, and you won't take them?Truly, a large portion of you can receive a gift from the bank without any problem, a check amounting to 10,000-15,000 shekels, or even more. If you took out a mortgage with a high financing percentage and used EMI insurance for this purpose, continue reading. What is EMI insurance? EMI… Read more »
Mortgage RefinancingThis week, the Treasury published two decisions that will allow you to save a lot of money. Both decisions concern previously published campaigns that, unfortunately, did not receive a public response despite their advantages: 1. A campaign to refinance eligibility mortgages for eligibility loans… Read more »
Change in early repayment fee calculation methodWhen refinancing a mortgage, the bank charges three types of early repayment fees: an operational fee – the refinancing transaction requires effort from the bank, and effort costs money. You will pay 60 shekels for the handling involved in the early repayment of the loan. An interest fee... Read more »
The Ministry of Construction launched a campaign to encourage mortgage refinancing.Many mortgage holders have an "eligibility loan" and are convinced they received a gift from the State of Israel. In fact, this gift—an index-linked loan with an interest rate of 4%—was certainly a generous gift when the index-linked interest rate in Israel was 5%–6% a decade ago. Today, the apple that was given… Read more »
How to pay less on a mortgage, pension, supplementary fund, and insurance?Things you can do to lower your mortgage and reduce your monthly payments, as well as fees on your pension, provident fund, and all your insurance policies. Read more »
End-of-year promotions at the mortgage bank will save you a lot of money.Anyone working in a business that sells a product or service knows the end-of-year feeling. In a month, the business year will close, and afterward, financial reports summarizing the year will be submitted and bonuses for those responsible for the year's success will (or will not) be paid. There's a sense of pressure... Read more »
For 9 years, I've been paying, and the debt hasn't gone down – I paid for two years, and the debt increased.Hello, in my opinion, increasing public knowledge on the subject of mortgages and real estate is one of the things that can significantly improve the financial situation of families in Israel. As part of this activity, I manage the real estate forum on Tapuz. This… 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 »
Mortgage management reportWhen requesting a mortgage refinance, the bank's first requirement is a two-year mortgage activity report. This report goes by slightly different names at each bank, which can be confusing. However, the essence of the report is to present all payment activities from the last two years. The bank... Read more »
Capital adequacy and its connection to usThe Bank of Israel is responsible for the stability of the banking system. As part of this responsibility, the Bank periodically issues directives intended to improve the stability of banks. These directives cost money, which is usually passed on to customers. In 2011, the Bank issued... Read more »