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 is no age at which you are "not allowed" to take a mortgage. But age affects the terms, mainly through the loan term.
Why does age matter?
Banks want the loan to end at a reasonable age, according to each bank's internal policy. The older the borrower, the shorter the maximum term, and the higher the monthly payment.
Income after retirement
The bank will also check what your income will be after retirement: pension, allowances, rent. If the term continues past retirement age, the payment must also fit that income.
Life insurance
At an older age the premium is higher, and sometimes there are medical requirements. It is worth comparing companies. Mortgage insurance
Possible solutions
- High equity – reduces the loan and the payment.
- A guarantor or a younger co-borrower – for example a child who joins as a borrower (they need to understand what this means for them).
- A reverse mortgage – for homeowners who want money without a monthly payment. Reverse mortgage
- Equal principal – a payment that goes down over the years. Spitzer or equal principal
Elia's tip: If you are over 55 and planning a purchase, check the policy of several banks in advance. The differences between banks in this area are large.
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.