What costs should I expect when taking out a mortgage in Israel?
In addition to the loan principal and interest to be repaid, there are three main costs associated with obtaining a mortgage in Israel:
- Bank Handling Fee – A fixed fee, typically around 360 NIS, charged by the bank for processing the mortgage application.
- Property Valuation Fee – The bank requires a certified appraiser to assess the property’s market value. The cost varies depending on the property and the appraiser, typically ranging from 2,000 to 5,000 NIS plus VAT.
- Life and Property Insurance – Borrowers must purchase life insurance and property insurance as a condition of the mortgage. The cost depends on various factors, including the borrower’s age and medical history for life insurance and the property’s value and condition for property insurance.
Understanding these costs will help you plan your mortgage budget more accurately.
This guide is intended to provide the reader with general information and not to serve as legal or other professional advice. Readers are advised to obtain advice from qualified professionals before entering into any real estate transaction.
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