Mortgage calculator or no mortgage calculator

Sometimes we don't have to take out a mortgage to buy the apartment we want. Alternatively, for example, if we withdraw all the money we have in various investments, we can take out a smaller mortgage. So, should we withdraw money from various investments to reduce a mortgage or avoid taking out a mortgage altogether?

First, it's very important to understand that there is no "right" or "wrong" answer to this question. Different things suit different families. Many, for example, will say, "I don't want to be indebted to the bank." Others will say, "I don't want to invest in the stock market, so my money is invested in stable, low-yield avenues.".

The question above is relevant only if our money is invested in an asset class that is highly likely to yield a return higher than the mortgage interest rate in percentage terms. For example, if our money is in the capital market and yields 7.1% after taxes and fees, while we pay 5.1% interest on the mortgage, then it’s worth considering. If, on the other hand, our money is in a deposit account earning 3.1% interest while we pay 5.1% on the mortgage, then there is a clear right and wrong! It makes sense to withdraw the money from the deposit account and reduce the mortgage (or learn how to achieve a higher return). in other investments).

In any case, questions of this type should not be decided solely on the basis of calculations but also in consideration of our (both partners') feelings about risks, losses, etc. The calculation below provides a price tag for every decision, but many times we will want to pay the price because the alternative is worse. Decisions like these should be made with professional advice that takes into account many more components besides the calculation. Another thing to avoid is allowing background noise to influence your decision. For example, many people decide to take out a mortgage because "it's the cheapest loan.".
It's not the cheapest. Often, you can get cheaper loans (for smaller amounts and fewer years).

B. It's not relevant. I'm not going to start smoking because I found cheap cigarettes. If we think it's wrong to take out a mortgage for a certain use, then price is irrelevant except in comparison to the return, as mentioned above.

By the way, a question in the same vein is:
I want to buy an apartment for 2 million shekels and I have two million shekels. Should I buy one apartment without a mortgage or two apartments with a mortgage of one million for each? As stated, there is no single answer to this question, and different things suit different people. I hope the calculator will also help in reaching the right answer to this question.