Articles and Terms
Recommended Mortgage Mix: How to Build a Winning Mix
A well-designed mortgage mix is not based on a fixed formula, but on a personalized balance among the interest rates, the ability to repay, the level of risk and the financial plans of the borrower. The article explains how to build a balanced mix, why it is wrong to look only at the initial interest rate, and how the right combination of stability, flexibility and cost can affect the mortgage over the years.
Mortgage for Purchasing an Office or Commercial Property
The purchase of an office or commercial property requires a different examination than the purchase of a residential apartment. The article explains what a mortgage for the purchase of an office is, what parameters are examined by financing providers, what is the difference between a property for own use and a property for investment, and what financial, business and legal considerations are important to know before entering into a commercial financing transaction.
All-Purpose Mortgage Secured by an Existing Property
An all-purpose mortgage allows property owners to obtain financing against an existing apartment, without selling the property. The article explains in which situations the solution can be suitable, such as renovation, loan consolidation, family assistance or a business need, and what is important to check before pledging an asset for a long-term loan.
Fixed-Rate CPI-Linked Mortgage
A fixed-rate CPI-linked mortgage track gives certainty about the interest rate, but not necessarily about the amount of the debt and the monthly repayment. The article explains how the track works, what it means to be indexed, why the initial interest rate may seem attractive, and how to examine the real risk before incorporating it into the mortgage mix.
Mortgage Grace Period: How to Defer Repayments Without Mistakes
A mortgage grace period can ease the cash flow during a transition period, but it is not debt cancellation or automatic savings. The article explains the difference between partial grace and full grace, when deferring payments can be appropriate, how it affects the repayment later, and what is important to check before choosing to use grace as part of the mortgage planning.
Non-Bank Mortgage for Complex Situations
A non-bank mortgage can provide a solution in cases where the banking system does not approve financing or when a more flexible and faster structure is required. The article explains for whom the solution may be suitable, its advantages, the risks and costs that are important to know, and why it is important to carefully examine the terms of the loan before moving forward.
Mortgage Without Equity: What Is Really Possible
Buying an apartment without full equity is one of the main questions of many buyers, but in practice it is an issue that requires caution and planning. The article explains what is really possible in the mortgage market, which sources can help supplement equity, and what is important to understand before trying to build a deal with low equity.
Prime Interest Rate and Its Effect on Your Mortgage
The prime interest rate is one of the most influential concepts on mortgages and loans. The article explains what the prime interest rate is, how it is calculated, how it relates to the Bank of Israel interest rate, and how a change in the prime interest rate can affect the monthly repayment, the prime track and the level of risk in the mortgage mix.
Mortgage Refinancing to Reduce Monthly Payments
Mortgage refinancing makes it possible to re-examine an existing loan and restructure it on terms more suitable for the current economic reality. The article explains when it is worthwhile to consider refinancing, how a change in interest rates, income, or the mortgage mix may affect the viability, and what is important to compare before replacing the existing mortgage.
Reverse Mortgage for Property Owners in Later Life
A reverse mortgage allows property owners in later life to receive money against the apartment, without selling the property and without necessarily leaving the house. The article explains who the solution can suit, how the money is received, what the repayment options are, and what is important to check regarding costs, debt accumulation, impact on the heirs and possible alternatives.