Stages of the Mortgage Process
The mortgage process typically takes 3–8 weeks from the time the application is submitted. Advance preparation is significant — collect documents in advance to save time. Here are the key stages:
Stage 1 — Application and Pre-Approval: Submit an application to several banks simultaneously. The banks will assess your income, existing debts, and equity. Pre-approval is not binding — it is a preliminary indication of willingness to consider the application.
Stage 2 — Appraisal: The bank commissions its own appraiser to inspect the property. If the appraisal is below the sale price — the bank will lend based on the lower of the two.
Stage 3 — Document Submission: Pay slips, bank statements (3–6 months), tax form 106, certified income statements for self-employed, purchase contract, land registry extract.
Stage 4 — Final Approval: After reviewing all documents, the bank issues a final "mortgage offer" with the exact terms.
Stage 5 — Signing: Signing the loan documents. An important moment — read everything before you sign.
Stage 6 — Fund Release: After meeting all conditions (life insurance, structural insurance, caveat registered in favour of the bank), the bank transfers the funds directly to the seller.
Documents Usually Required
Salaried employees: last 3 months' pay slips, tax form 106 (previous year), 3–6 months' bank statements, identity card.
Self-employed: invoice book, annual reports, accountant's certification of income, balance sheet.
Everyone: signed purchase contract, land registry extract, appraisal report.
Mortgage Refinancing
Refinancing is taking out a new mortgage on better terms to pay off the existing one. Market interest rates change — when rates were high and subsequently fall, it is worth exploring refinancing. Compare: does the saving on interest exceed the early repayment penalty?
Mortgage Advice — Really Worth It
An independent mortgage advisor (not a bank employee) can save you tens of thousands of shekels over the life of the loan. They know the banks' tricks, know what can be negotiated, and what can be improved in the loan structure.