Please note: advisory meetings and the service itself are provided in Hebrew only. These guides are here so you can read and understand the topic in your own language.
A mortgage rejection feels like the end of the road, but usually it is not. In many cases you can understand the reason, fix it and reapply successfully.
Common reasons for rejection
- Problematic credit data – arrears, returned payments, collection proceedings. Credit rating
- A high payment-to-income ratio – too many liabilities relative to income. The PTI limit
- Account conduct – a permanent overdraft, going beyond the limit.
- Unstable or unproven income – especially for the self-employed. Mortgages for the self-employed
- A problem with the property – registration, building violations, a low appraisal.
What to do now
- Do not rush to other banks immediately. An unprepared application to several banks will not solve the problem.
- Understand the reason – ask for an explanation, and check your credit data report.
- Fix what you can – close arrears, consolidate loans, stabilize the account.
- Wait for the right time – sometimes a few months of proper conduct change the picture.
- Reapply in an organized way – with an explanation, documents and a clean file.
Possible solutions
- Increasing your equity or choosing a cheaper property.
- Adding a guarantor.
- Loan consolidation to improve the payment-to-income ratio.
Elia's tip: Avoid "magic solutions" from bodies that promise a mortgage to anyone. Check the costs and interest rates very carefully; the difference can be huge. Non-bank loans
This article is general information and is not personal advice or a commitment. Rules, interest rates and taxes change from time to time, so check the current situation and your own figures before any decision.