Buying your first apartment comes with a lot of excitement, and sometimes with decisions made too quickly. These are the mistakes I see most often, and how to avoid them.
1. Signing a contract before you have financing approval
The contract sets payment dates. If the mortgage is delayed or comes out smaller than expected, you are in trouble. First an approval in principle, then the contract.
2. Forgetting the extra costs
Purchase tax, lawyer, agent, appraiser, renovation: these add up to tens of thousands of shekels. All the costs of buying an apartment
3. Looking only at the interest rate
A low rate on one track does not mean the mortgage is cheap. Look at the whole mix and the total cost. Low rate or low payment?
4. Staying with one bank
The bank where you have your account is not necessarily the cheapest. Competition between banks is a strong negotiating tool.
5. Stretching the payment to the limit
The bank approves up to a certain limit, but life also includes unexpected expenses. A payment that leaves some room is a healthy payment.
6. Emptying all your savings
A safety cushion is not a luxury. Keep an amount aside for emergencies.
7. Taking loans "to complete the equity"
Such a loan increases your liabilities and reduces the mortgage that will be approved, and it is usually expensive.
8. Not understanding the CPI
Linked tracks look cheap, but the principal is adjusted to the index. What is the CPI?
9. Buying life insurance only through the bank without comparing
You may buy insurance from any company. The price differences over the years can be significant. Mortgage insurance
10. Not thinking about the future
Planning to move in a few years? Expecting an inheritance or a bonus? That affects the choice of tracks and the early repayment fees.