How can I secure a mortgage loan in Israel?
The object of this section is to simplify the different steps that constitute a mortgage loan in Israel, from putting together the different forms necessary to constituting your file, up to the disbursement of funds. We won’t go into the technical details of the mortgage loan and its specificities, but here is a description of the steps, so that you may understand the basic principles.
I – Collecting the different elements and audit of the file
For starters, it’s important to specify that there are no fees associated with taking on your case file.
At this stage, we collect first and foremost we collect all the necessary elements by email, then we proceed to their analysis and the feasibility of your project.
We will choose the loan scheme that best suits your solvency and allows you to optimize your capital, whether it is real estate or financial.
After this step, your file will be submitted to our partnering banks.
II – How to put together your mortgage loan file in Israel
During this step, the object is to look out for your interests with the banks, even with a lawyer if need be.
This starts with a rereading of the elements with bankers and going over your file with them.
Then we explain to them the desired loan scheme and the desired financing formulas (indexation, early repayment fees, etc…).
Finally, we defend your file in the context of a principal agreement, that will be issued on the basis of several elements, namely your solvency, the desired financing, your professional profile, the type of property… etc.
III – Principle of agreement
As opposed to the promise of sale first signed in the USA, in Israel the sale is conditioned by obtaining a mortgage loan, as stipulated in the clause related to financing,
Thus, we highly recommend that you undertake the necessary steps to obtaining a principle of agreement before you set out to look for a property.
So as soon as you obtain the first principle agreement, you’ll be able to proceed with the ratification of the acquisition contract, since a bank gave you the guarantee of its financial participation on the basis of the elements that have been submitted to us.
IV – Choosing the bank
Once we have obtained different principle agreements from our partner banks, we proceed to start a competitive bidding process with our different partners after which we will select the proposal that best suits your profile and your specific needs.
V – Ratification of the loan contract
We will go together to the bank that was selected, in order to proceed to the signature of the loan contract.
Please note that a delegated power of attorney may also represent the borrowing party, and this goes for the length of the process: this way you won’t necessarily need to physically come to Israel for the different steps described in this section.
The delegated power of attorney will generally be your lawyer, but can be any other person you choose.
VI – The guarantees
During this stage we will take care of the different steps required by the bank, the end goal being the disbursement of funds. These steps include:
– Appraisal of the property
– Registering your loan with the Israeli Land Registry.
– Documentation for the Israeli Land Registry confirming mortgage loan authorization.
– Registering your credit with the registries of the governmental entities charges with centralizing the different loans contracted in Israel.
– Subscribing to different insurance policies required by the bank. For this step, we ask an insurance broker approved by the bank to get in touch with you.
This list is not exhaustive. You’re welcome to request information with us about the entirety of the steps that constitutes the guarantees process.
VII – The verification of your file
During this step the bank checks all the documents that have been submitted and then gives its authorization to transfer the funds.
VIII – The transfer of funds
The bank disburses the funds!