In cooperation with Mizrahi Tefahot Bank
The housing market continues to make headlines, and as always, the question is whether now is the right time to buy an apartment and commit to a mortgage. On the one hand, interest rates, which have been on the rise over the past year, make mortgage repayments more expensive and burden borrowers. On the other hand, rental prices are also on the rise, so the alternative to renting an apartment is not very attractive.
So what do we do? Keep waiting or jumping into the water?
There is no doubt that this is a time of uncertainty, but for those who have already made a decision and are interested in purchasing an apartment now, it is worth getting to know some innovative solutions led by Mizrahi Tefahot Bank, in order to help mortgage borrowers, even during this challenging period.
Mortgage at your own pace
These days it is important to choose a flexible and customized solution to the financial ability of each client, since a mortgage is usually a long-term loan. The "mortgage at your own pace" track adjusts the amount of the monthly repayment to the family's financial ability, at each stage of its life.
The track also takes into account future changes in family expenses, payments for kindergartens, large purchases such as a new car, and more. The mortgage mix was built in advance together with the bank's mortgage expert, according to a flexible repayment schedule that adapts itself to the customers' needs and capabilities. For example, a young couple at the beginning of their career with low incomes can pay, as part of this unique route, low monthly repayments, at the beginning of the period, or even receive a full or partial deferral of the repayment for a certain period.
At a later stage, the monthly repayment increased, in line with the planned increase in family income.
Another significant plus is that the mortgage is given at a fixed and predetermined interest rate for the life of the mortgage, which provides stability, security and protection to customers against future increases in the interest rate.
The interest rate on the overdraft is on us
In addition, the bank offers a special benefit to mortgage customers who also have a current account in Mizrahi Tefahot, from which the loan is paid. As part of this, customers will not pay interest on the overdraft in their current account, up to the monthly repayment of the mortgage or up to NIS 6,000, whichever is lower. This benefit, which will be given for a period of one year, is relevant both to customers who already have Mizrahi Tefahot's mortgage and will now open a current account at the bank, as well as to new customers who, at the time of taking out the mortgage, will open a new current account at the bank.
It is worth remembering that this benefit is particularly attractive, at a time when the interest rate in the economy is high, such as today, and therefore it is a significant savings for those who have high monthly expenses, and are also forced to pay interest on the overdraft in their account.
Buying an apartment requires preparation and familiarity with a wide world of concepts and possibilities – from financing solutions to renovations. Mizrahi Tefahot Bank is currently launching two new free tools to help potential home buyers:
Apartment preparation course
The course will take place throughout the country and will be offered to the general public free of charge, and will include all the relevant concepts and tools for purchasing an apartment, just before committing to the most significant economic transaction in life. In the course, among other things, you get tools on how to choose the living environment, what you need to know when taking out a mortgage and even some important tips on home design. All that is required is to register in advance on the bank's website.
And how do you know which apartment you can buy?
Another effective tool that will be launched soon is Mizrahi Tefahot's apartment simulator, an online tool that helps in the initial stages of searching for an apartment. Enter the amount of existing equity, the amount of the monthly repayment that the customer can meet, and the simulator displays the value of the apartment that can be purchased and even presents potential apartments for purchase from the Madeleine website.
Find the best route
As Israel's largest mortgage bank, Mizrahi Tefahot is aware of the changing market conditions and works to provide diverse solutions tailored to each customer. Even in times of rising interest rates, the bank makes efforts and offers valuable solutions so you can get to your own home.
Want to know the right way to mortgage? Come and consult the experts of Tefahot *8860
The granting of the loan is at the discretion of the bank. Failure to repay the loan may result in delinquent interest charges and execution proceedings. In accordance with the mortgage payment schedule that will be determined prior to execution, subject to the terms of the track. An interest benefit on the overdraft will be given to current account holders in Mizrahi-Tefahot from which the mortgage is paid, up to the amount of the monthly repayment or up to NIS 6,000 (whichever is lower). The benefit will be given for one year. The bank may change and cancel the benefit at any time. The value of the property presented is based on the amount of equity entered by the client and on the theoretical maximum loan amount only, calculated according to: the monthly repayment amount entered, the loan track and the theoretical interest rate only. The value of the assets presented from the Madeleine website is based on the value of the property obtained from the entered data and the bank's calculation. The presentation of the assets does not constitute a recommendation to purchase one property or another.
In cooperation with Mizrahi Tefahot Bank
