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.
Most people think about refinancing only when rates fall. But sometimes, precisely in a period of rising rates or when the future is unclear, refinancing is the right step.
Goals other than "lowering the rate"
- Reducing prime exposure – moving part of the prime to a fixed track so the payment does not keep climbing. The prime track
- Spreading out again – when the payment has become too heavy, extending the term (carefully) can prevent the budget from collapsing.
- Leaving linked tracks – if the principal has grown a lot because of the CPI. What is the CPI?
What is the price?
Moving from prime to fixed in a period of high rates usually means locking in a high rate. It is an "insurance premium" for certainty. The question is whether peace of mind is worth it for you.
An example
A family with 60% of the mortgage in prime. After a series of rate rises, the payment went up by a few hundred shekels. Refinancing part of the prime into a fixed non-linked track would make the current payment slightly more expensive, but would protect against further rises.
Elia's tip: If the monthly payment is already keeping you up at night, that is a sign to review the mix, regardless of interest rate forecasts.
More: when to refinance, how to build a mix.
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.