When selling an apartment in order to purchase another one, the mortgage collateral must be updated. The sold apartment can no longer serve as mortgage collateral and it is replaced by the purchased apartment.
This process is known as mortgage dragging, i.e. cancelling the encumbrance of an asset guarantee and replacing it with another asset guarantee of the mortgage loan.
Mortgage dragging approval is subject to Bank consent, upon verifying that you meet the restrictions and procedures determined by the government (regarding amounts granted under the Ministry of Construction and Housing aid plans) and/or the Bank.
For details on mortgage plans