FAQ about Mortgage consulting
Is it worth hiring a mortgage advisor?
In most cases, yes. A mortgage taken with the guidance of a mortgage advisor will typically be more cost-effective, convenient, and tailored compared to a mortgage taken based on the client dealing with the bank directly, as the financial savings are significantly higher relative to the advisor's cost.
When is the right time to contact a mortgage advisor?
It is recommended to contact a mortgage advisor at the stage of planning the transaction, before signing a contract, a memorandum of understanding, or any other commitment.
How much does a mortgage advisor cost?
The advisor's cost is not uniform and varies between advisors and different cases. It is affected by a variety of factors, including the complexity of the case and the advisor's experience and reputation.
How do you find a recommended mortgage advisor?
To find a mortgage advisor, you can rely on personal recommendations, recommendations on social networks, and reviewing the advisor's ratings and reviews on search engines, as well as on our directory site BIZREVIEWS, which also includes client reviews about the service they received.
How can you check that the reviews about a mortgage advisor are reliable?
It is recommended not to rely solely on numerical or star ratings, but to read detailed reviews and more extensive information. When engaging an advisor, you can also ask to speak with their references and ask specific questions about handling similar cases.
Can a mortgage advisor guarantee approval from the bank?
The factors affecting mortgage approval by the bank are influenced by Bank of Israel regulations, the banks' own policies, credit rating, and the client's own data, among others. The advisor cannot commit to approval before a comprehensive review of the data, but after the review, based on the findings, will be able to assess the potential for approval.
Can a mortgage advisor help those who have been rejected for a mortgage?
Absolutely — an experienced mortgage advisor will usually be able to help even in complex cases, including those rejected for a mortgage, self-employed individuals with fluctuating income, and more.
Is it worth using an advisor for mortgage refinancing?
Yes, in many cases people pay high repayments due to old mortgages taken under non-optimal terms, and through proper professional guidance and mortgage refinancing, it is possible to achieve a substantial improvement, reduce monthly repayments, or shorten the mortgage term.
How do you check the mortgage balance?
The first step in the process is checking the current situation: the mortgage balance, the mortgage mix, and the interest rates. You can log into the website of the bank from which the mortgage was taken and download a "payoff balance report," or call the bank's service center and request such a report.
How do you calculate mortgage interest?
Once you understand the current situation, you can use online mortgage calculators (a mortgage comparison calculator, the Ministry of Finance mortgage calculator, calculators on various banks' websites) to run simulations. You can also find the average interest rate applied per track on the banks' websites.
How to refinance a mortgage on your own?
As a first step, it's advisable to examine the remaining loan balance, the interest rates on the existing mortgage mix, and whether there is an early repayment fee, all against new offers from several banks. The decision should account for the total savings and not just the monthly repayment, and should also ensure the new mortgage offer suits your repayment ability.
Where can you get the best mortgage?
After understanding the mortgage amounts and planning the appropriate mix, it is recommended to conduct a market survey among the banks and understand where the lowest interest rate can be obtained. In many cases, one bank will offer a benefit on one track at the expense of another, or short-term perks (such as a discount or waiver of the file-opening fee); it is important to understand the real effect of every change in the mortgage structure, both on the fixed monthly repayment and on the total cost of the mortgage.
How do you know which mortgage track to choose?
It is customary to split the loan into several tracks, with the main weighting of the money determined according to the client's needs, income/expense characteristics, expected changes, and preferences. The main difference between the various tracks is cost versus stability. Fixed-rate mortgages, although more expensive in terms of the initial interest rate, provide stability and are not affected by fluctuations in the economy, compared to variable-rate mortgages, which may start low and rise over the years.