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.
Mortgage refinancing (מחזור משכנתא) means replacing your existing mortgage, in whole or in part, with a new loan on different terms. It can be done at the same bank or at another one. The goal may be to lower the payment, shorten the term, reduce risk, or several of these together.
6 signs it is worth checking
- Market interest rates have fallen since you took the mortgage.
- You have fixed tracks at a high rate, for example from a mortgage taken in 2023–2024.
- The monthly payment is a burden and you want to spread it out again.
- Your income has gone up and you want to shorten the term and save interest.
- An exit point is approaching on a variable track.
- The principal on your linked tracks has grown a lot because of the CPI. How CPI linkage works
What decides: savings versus cost
Refinancing almost always involves costs: early repayment fees, file-opening fees, appraisal and registration. The decision is simple in principle: are the long-term savings significantly greater than the costs?
When is it not worth it?
- When the capitalization fee is higher than the expected savings.
- When only a few years are left until the end of the loan.
- When refinancing "lowers the payment" only by extending the term, and makes the mortgage more expensive overall.
Elia's tip: Refinancing is not an all-or-nothing decision. Sometimes refinancing a single track, the one with the high rate and a low fee, brings most of the savings.
A first check: refinancing calculator (in Hebrew).
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.