Can the mortgage be repaid early?
All loan plans provide the option for repaying the loan before the end of the period. In some plans, such payment is not subject to an interest differential capitalization commission. For example the NIS and Foreign Currency linked sector.
On the other hand, there are loan plans in which any payment during the loan period is subject to an early repayment commission.
What are early repayment commissions?
When repaying the loan early, banks charge commissions comprised mainly of "commission for economic loss to the bank". This commission is charged in accordance with Bank of Israel provisions.
Upon early repayment, when the market interest is lower than the interest applying to your mortgage, the interest gap comprises an economic loss caused to the bank and thus it is paid a commission. If the interest when paying the loan is higher than your mortgage interest rate, you will not be required to pay this commission.
Which variables must be considered when selecting a preferred mortgage plan?
The decision on which loan to take depends on many economic variables, such as: consumer price index and economic assumptions relating thereto, forecasted changes in market interest rates, currency exchange rates and expectations relating thereto, and objective and personal variables such as the customer's future repayment capacity, currency of the repayment methods, workplace, advanced study maturity date, various inheritances, etc.
Therefore, when coming to meet the consultant, you should reveal all of your future plans. This information will help us customize a mortgage plan that is most convenient and appropriate for you.