No part of the mortgage experience should be a surprise. These are some of the additional costs and fees associated with a typical mortgage loan or property purchase in Israel:
Bank Origination Fee
This fee is paid directly to the bank servicing your mortgage loan. The rate is typically around .25% of the loan amount, with a maximum of 5,000 NIS. Sometimes banks offer promotional or discounted rates.
Legal representation is required to purchase property in Israel. Typical rates vary from around .5%-1%, plus VAT. Consult with your counsel for additional information related to these costs.
In Israel, part of the process of obtaining a mortgage loan is having the property assessed by an independent appraiser. The cost of such an appraisal varies relative to the cost of the property, as well as to the stage of the loan process. For example, the rates will vary based on whether the appraisal is prior to or after signing the property contract. Our representatives will work with you and the assessor to ensure that you receive the best terms on the cost of an appraisal.
Registering a mortgage in Israel costs about 1000 NIS.
Please Note: Exact fees and additional costs will vary depending on the lending institution.