Globes, Eric Mirowsky, 19.03.2020

For home buyers, the crisis comes at an unsuccessful timing at all. The financial situation is weak, and tens of thousands are experiencing layoffs or forced leave. More bad news is expecting delays in delivering apartments. On the other hand, there are financial liabilities with the mortgage banks.

The situation of purchasers who are at the height of their mortgage-taking process is complex and even enigmatic. It is important to emphasize that there are no school solutions to most of the problems, and in situations where two or three times a week the guidelines change and the economic paralysis worsens, it is difficult to provide complete answers. However, there are several principles to know.

"We notice two types of customers: those who signed deals before the crisis broke out and want to end the process; and those who are in the process of signing deals and need to apply for mortgages. In recent times, the pace of requests has slowed in recent days. More, they think less about buying apartments, "explains Bank Leumi Mortgage Head, Tal Bar-El.

AMG Mortgage Advice CEO Amit Kaminsky says new applicants for her mortgage have dwindled.

"Globes" came out in order:

Can I now apply for a new mortgage?

Banks are making efforts to respond to new requests, but the treatment is slower than usual. So when you sign contracts that commit to mortgage transfer deadlines - take that into account and take time intervals.

How are the banks doing now?

There is nothing to reach the branch, because there is a high probability that it is closed. Customers report that the call centers of the banks are busy, and therefore a patience should be provided. On the other hand, some banks have thwarted the call centers, increasing the powers given to the call centers. Some banks have digital services that meet some of the requirements. A meeting with mortgage officials is still possible, but most often by telephone in advance, when meetings are likely to take place at a central bank branch.

What about the Registrar of Mortgages, Municipalities and Taboos - institutions that need to be approved on the way to obtaining their mortgage?

Regarding the Mortgage Registrar and the Taboo - Your lawyers can make the listings online. At present, there have been no reports of unusual problems in conducting these two institutions. With regard to municipalities - the situation varies from municipality to municipality.Some local authorities operate online services on these issues, and we recommend that you check them out individually.

Do appraisers who are supposed to check the apartments work normally?

At one point, a bank customer was given a list of several appraisers, but they all refused to come and inspect the property. However, not all appraisers are disabled, and appraisers can be located to handle the request. Here, too, it should be taken into account that everything is slower and takes longer.

Is it possible to recycle an existing mortgage today?

Banks are currently focusing on providing new mortgages, so in the near future it is advisable to wait with the mortgage recycling process, which is unlikely to take precedence.

I got stuck when I was in the US and after realizing a transaction. What can I do about my mortgage repayments?

Vader Mortgage CEO Meir Vader mentions two emergency ways to deal with a severe blow to many in recent times. First - The Bank of Israel has dramatically expanded the possibility of increasing its mortgage at the expense of existing property and taking up to 70% financing to close all-purpose loans instead of 50 The possibility of consolidating loans and mortgages allows those with additional liabilities to spread their loans for 25-20 years, thus reducing their monthly repayments. The second step is to freeze the mortgage repayments for several months, in hopes of escaping the Corona crisis And to reach better days, both steps have drawbacks, one of which is increasing commitment Also increasing monthly repayments to banks and their operation depends on the judgment-think.

In recent years we have become accustomed to low interest rates, what is it now?

Mortgage interest rates are on the rise. This is due to the risk that banks see before their eyes in light of the red lights flashing in every direction - issuing many to the ISA and even layoffs, and an increase in bond interest rates, affecting bond-based mortgages. Kaminsky explains that his people, even today, found Significant interest rate hikes by banks, and yet, Vader believes that we are living in a period of very low interest rates, and they remain attractive even after raising them.

In today's reality, what kind of mortgage is better?

As Israeli prime ministers say, "That's not the question." In the end, it should be taken into account that mortgages are usually taken for 20 years or more, and their mortgage can always be refinanced if the route you originally took does not look good enough.

On the other hand, the Corona will probably accompany us for a few months, which is a relatively short time, throughout its mortgage, so that even if you took a mortgage on a track that will make you less successful in the future than others - there will be opportunities to repair.

However, it is advisable to avoid signing with the mortgage banks as much as possible, because in the current situation, interest rates rise along with uncertainty and paralysis of the economy. In the future, new conditions may also come, which will make it even more difficult to get mortgages. It is important to note all of those who are found to the USSR that the banks may refuse to accept their mortgage.

Still, what do the experts recommend?

Generally, mortgage advisors are currently recommending that the mortgages be exhausted in non-index-linked tracks, such as the prime route, which the Bank of Israel allows to take one-third of the loan.Regarding the balance - the majority depends on the term of taking out your mortgage (for 5 years or 25 years for example), and according to the client's liquidity situation.