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Planning to take out a mortgage soon? Come read the tips and secrets for families taking out a mortgage during the Corona periodTags
In collaboration with arcdb Architecture Interior Design, Construction and RenovationsTuesday, 11 August 2020, 14:10
As in every area of our lives, the outbreak of the corona plague has greatly affected the world of mortgages as well. To put things in order, we invited Ofir Peer, a recommended mortgage adviser, to put things in order for us. With 20 years of experience in the banking system, of which 8 years he worked at the bank and got to know the course of events closely and as someone who trains mortgage advisers at the college and deals extensively with the subject, Ofir is the person we approached to get answers on one of the essential issues facing every home buyer.
Let's start from the basics, what is a mortgage mix?
"A mortgage mix is the combination of different mortgage routes (prime, fixed linked, linked variable, unlinked fixed, unlinked variable, etc.) at different interest rates and for different periods. From my experience choosing the right mortgage paths allows the highest financial savings in a mortgage. A customer can reach it for about NIS 150,000. Negotiating interest rates can bring us, for example, savings of about NIS 30,000. The rest will come from choosing mortgage routes that are right for the customer and not the bank. "
How do you adjust the mortgage repayment for the family in general and especially during the corona period?
" Each family's needs must be understood in depth: for example, will there be more children soon? For a mortgage? Wages are expected to rise or fall? Will the mortgage accompany us into the pension as well? And more. Since this is a period full of question marks, I recommend setting aside an amount of about NIS 50,000 in case of need.
Are there any special reliefs of the state in this period after the corona crisis?
"During the peak of the corona, banks raised mortgage rates by 1-1.5%. Later, they lowered interest rates back to their lowest level in five years. The state allows the mortgages to be frozen for six months, but not their subsidies. Something that did not happen before. In the past, if your mortgage was in Bank A, then you could not take out another mortgage in Bank B (you had to transfer the existing mortgage from Bank A to Bank B as well, or take out the new mortgage only in Bank A). You can leave the existing mortgage in Bank A and take out another mortgage in Bank B. "
Is there state aid due to the corona crisis?
"Except for what I mentioned above, there is a state benefit for the self-employed in a state-guaranteed loan in which the state subsidizes the interest at the expense of the first year."
How to present ourselves well to the bank?
"Make an appointment in advance, come dressed properly, prepare all the required documents already photocopied to the banker, define in advance at home how many mortgages you need, in what monthly repayment, for how long and control your existing numbers (your income and expenses)."
What issues are important to focus on in building a mortgage budget as part of the family budget?
"Especially now during the corona period, it is advisable to leave money for a 'rainy day', to understand where the family's funds are at the moment, are there any liquid funds in the bank or shares? Liquids in a liquid training fund? / Pension? Etc. ".
Is it easier now to take out loans due to the corona crisis?
"Unfortunately not. The banks and insurance companies" closed the taps. "Before the Corona, for example, it was possible to take out loans at the expense of an illiquid study fund and now almost none.
If I need a relatively small amount of up to NIS 150,000, is it worth taking out a loan or is it better to take out a mortgage?
"I think it is worthwhile to take out a mortgage due to the longer repayment period, which allows for a lower monthly payment. An amount of NIS 50,000, for example, is worth a loan. There are still places today with cheap interest rates from the banks. "
Is this a good time for mortgage recycling?
" Yes. Interest rates are now the lowest in 5 years. You can save a lot of money even if you stay on the same monthly repayment as today and also earn that throughout the life of the mortgage the volatility in the monthly repayment will be lower. I'm testing now free for everyone during corona Should Refinance mortgage. "
What are the most important characteristics of the mortgage?
" Have to learn and know the pros and cons of the various tracks. In my opinion, it is important that the monthly repayment be stable, that the amount of debt to the bank be reduced from the beginning, that the total cost be as low as possible, that the early repayment penalty be low, minimum linkage and as little interest rate as possible. "
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