The Association of Mortgage Consultants warns that "the significant increase in the monthly repayment of the mortgage that is expected to continue will bring the repayment ratio of many households closer to 40% of their monthly income - a level that is considered dangerous. Therefore, the issue must be a priority of the new government - before it is too late ".
How much did the mortgage become more expensive?
According to an estimate by the Association of Mortgage Consultants, the decision to increase the interest rate increases the monthly repayment on an existing mortgage by NIS 131 and completes an increase of approximately NIS 876 within eight months, with the possibility of another increase in the coming months (for a mortgage of one million NIS for 25 years, 45% of which is in the prime interest track).
The total cost of such a mortgage increased by approximately NIS 263,000 within eight months.
What can the Bank of Israel do to make things easier for borrowers?
It can, for example, allow borrowers to extend the mortgage period under the existing conditions without changing the interest rate and allow loan consolidation and repayment within the mortgage up to 70% of the property's value.
With a forward-looking view, the Association of Mortgage Advisors calls on the Bank of Israel to act to reduce early repayment fees, in a way that will allow households to increase their mortgage rate at a fixed interest rate without fear of a future fine.
Gamaliel
"Make refunds easier", photo: no credit
What do we do in case of difficulty in meeting the repayments?
Shir Gamaliel, a private mortgage consultant, recommends that you consider "extending the prime component for a maximum period while maintaining the existing interest rate on your mortgage. You can request a freeze on the principal payments on the mortgage and pay only the interest for a certain period. In terms of reorganization, you can redistribute all mortgages and liabilities In order to facilitate the repayments of the increasingly expensive credit rule."
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