Refinancing a Mortgage in Israel

What does refinancing mean?

In Israel, when we say refinance, we mean the complete paying off of an existing mortgage with a new one. In some English speaking countries this is known as "recycling" a loan, and that is the literal meaning of the word מיחזור used by the Israeli banks.

Do you have to refinance with your existing mortgage bank?

This differs from case to case. In most cases you do not have to, but there are many situations where you must remain with your current bank.

Your current bank is under no obligation to refinance your loan. We have some financial tricks that they can't get around when we are occasionally faced with an intricate situation where the loan has to remain in the bank and they are not offering any good options.

Does everyone save by refinancing?

No. Timing is usually critical. Ariel explained Israeli refinance timing here. If you don't refinance early in the cycle, you might just come out even.

Though there might not always be a paper "savings" there are a lot of circumstances under which it is financially beneficial to refinance a mortgage. However, there are circumstances under which it is not in the client's best interest to refinance.

Taking Equity out of your home

In Israel, cash-out loans are generally frowned upon. This doesn't mean that they're impossible to ascertain. We can get loans against at rates that far better than non-secured loans for clients that are not having financial difficulties.

If you think that that there is a good chance that you will need a loan, the time to request the loan is far before you need it. We can convince banks to extend loans to attractive clients. We can't convince them to provide financing to people under financial stress. The time to get a loan is as early as possible.

Getting Started

Contact us right now. Please call your bank and order a pay-off report, called a
דו"ח יתרות תשלומים לסילוק משכנתא
it will help us provide you with preliminary guidance.

Independent mortgage advice

As experienced mortgage professionals, we have the knowledge and financial services expertise to find you the loan programs most suited to your family's needs, also with the lowest rates and the best possible terms. We take the hassle out of organizing your finances and help at every step of the mortgage process.

We are Israeli Mortgage Professionals. Don't even consider going into a bank before you talk to us.