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.
Before deciding to refinance, you need to know how much it costs. These are the possible costs:
Early repayment fees at your current bank
- Capitalization fee – the large component, mainly on fixed tracks when market rates have fallen.
- No-notice fee – up to 0.1%, and you can avoid it with advance notice.
- Average CPI fee – on linked tracks, if you repay by the 15th of the month.
- Operational fee – a small amount.
Details: early repayment fees.
Costs at the new bank (in external refinancing)
- File-opening fee – sometimes waived in negotiations.
- Appraisal – the new bank will require an up-to-date appraisal. The appraiser
- Mortgage registration – fees and the cost of a lawyer or registration company.
- Insurance – pledging the policies to the new bank.
How to reduce them
- Written advance notice to the bank.
- Timing according to exit points and the date in the month.
- Negotiating the file-opening fee.
- Partial refinancing of only the expensive tracks. Partial or full refinancing
Elia's tip: In external refinancing, ask the new bank to absorb part of the costs. Banks have budgets for attracting clients, and a simple question can save a few thousand shekels.
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.