Elia RokachMortgage advice · Rehovot, Israel

Refinancing at Your Bank or Moving to Another Bank: Which Is Better?

The differences in cost, process and bargaining power, and why simply checking with another bank often improves your current bank's offer.

2 min read · Updated: 2026-11-04 · By Elia Rokach, mortgage advisor · Translated from the Hebrew original

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.

There are two ways to refinance: internal refinancing at the same bank, and external refinancing, moving to another bank that pays off the old mortgage.

Internal refinancing

Advantages: - A simpler and faster process. - Usually no need for a new appraisal and registration. - Exempt from the no-notice fee.

Disadvantages: - The bank knows it is hard for you to leave, and will not always give you the best offer.

External refinancing

Advantages: - Real competition: the new bank wants you. - The option to rebuild the whole mix.

Disadvantages: - More bureaucracy: appraisal, registering a new mortgage, insurance. - Additional costs. The cost of refinancing

The trick: use the competition

Banks do not like to lose mortgage clients. Often, when you come to your current bank with a written offer from another bank, the internal offer improves. That way you get the terms of external refinancing with the convenience of internal refinancing.

Elia's tip: Even for internal refinancing, ask other banks for offers. Without a real alternative you have no bargaining power.

More: when to refinance.

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.
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