Understanding Mortgage Types in Israel
Mix and Match Loan Terms
In Israel, you can split your mortgage into different terms. For example, take part of your loan as a fixed-rate mortgage and another part as a floating-rate. This balances stability and flexibility.
Linked vs. Unlinked to CPI
Choose between loans linked to the Consumer Price Index (CPI), which adjusts with inflation, or unlinked loans for more stability.
Prepayment Penalty
Watch out for prepayment penalties if you plan to pay off your mortgage early. It’s a crucial factor in choosing the best loan for you.
💡 Why It’s Important
Understanding these options helps you align your loan with your financial goals and avoid surprises down the line.
Pro Tip: Fixed vs. Floating
For stability, choose a fixed rate.
Comfortable with variability? A floating rate could be beneficial if you expect rates to decrease.
Need Help Choosing the Right Loan? Let’s Talk!
If you have questions or need guidance, feel free to reach out.
