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 is built from several tracks, each with its own rate, balance and fee. So the right decision is almost always made track by track.
Partial refinancing
You replace only some of the tracks. It fits when: - Only one or two tracks have a high rate. - On other tracks the capitalization fee is too high. - You want to change the risk structure, for example reduce the prime share.
Full refinancing
You replace the whole mortgage, usually by moving to another bank. It fits when: - Most tracks have rates higher than the market. - The fees are relatively low. - You want to rebuild the whole mix.
How to choose tracks to refinance
- A track with a high rate and a low fee – the first candidate.
- Prime – you can usually exit it without a capitalization fee.
- A variable track at an exit point – an opportunity to leave without capitalization.
- A fixed track with a high capitalization fee – sometimes better to keep.
Elia's tip: Even within a track you can repay only part. Sometimes a partial repayment of an expensive track, with money you have set aside, is better than a full refinancing.
More: when to refinance, internal or external refinancing.
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.