Title: Israelis Urged to Compare Mortgage Offers Before Making a Decision
Date: [Insert Date]
In a recent study conducted by the Competition Authority in 2022, it was revealed that a majority of Israelis (56%) do not compare mortgage offers and settle for the offer of the bank they have a relationship with. The study also indicated that less than a third (31%) of mortgage takers receive two offers, and only 13% seriously compare prices by requesting three or more offers.
Experts believe that not comparing mortgage offers can be a costly mistake for borrowers. Those who take the time to bargain with different lenders can potentially reduce their mortgage rates by 0.08% to 0.2%, resulting in savings of tens of thousands of shekels.
The bureaucratic process involved in obtaining a mortgage can be daunting. Many people choose an apartment first and then realize that the mortgage they need may not be suitable. To avoid this pitfall, it is advisable to seek approval in principle from a bank before getting emotionally attached to a property.
However, even the process of comparing mortgage offers is not easy. The Bank of Israel has introduced an interactive page on its website that provides all the interest rates in all banks, with a filtering option to calculate the most suitable mortgage mix. Despite this tool, borrowers still need to contact each bank separately and negotiate for the best offer.
To simplify this process, some borrowers have turned to professional neighborhood consultants who help build the right mortgage mix, manage negotiations, and obtain optimal offers. While this service comes at a cost, the time saved and potential savings in the long run make it a valuable investment for many.
In a passionate conversation with a mortgage consultant, several suggestions were made for the appropriate mortgage mix that could meet all regulatory requirements while potentially saving considerable amounts of money. Choosing the right mortgage mix requires careful consideration of individual needs, risk tolerance, and long-term financial goals.
In conclusion, it is crucial for Israelis to compare mortgage offers from various lenders and consult professionals to ensure they make the best financial decision when taking on a mortgage. By doing so, borrowers can potentially save significant amounts of money and secure a more favorable mortgage rate.