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Understanding the Mashkanta (משכנתא)

In Israel, a mortgage is called a Mashkanta. The banking system has unique characteristics: a loan is not a single fixed block, but a "basket" (Tamhil) composed of several segments to balance financial risks.

1. Different Types of Mashkanta

Mashkanta LeDiour (לדיור)

Standard Home Loan. Intended for the purchase of your primary residence or a rental investment. It offers the lowest market rates with financing up to 75% for first-time buyers.

Mashkanta LeKol Matara (לכל מטרה)

"All-Purpose" Loan. Use the equity of your current property to obtain liquidity for renovations, weddings, or debt consolidation. Usually limited to 50% of the value.

Mashkanta Afouha (משכנתא הפוכה)

Reverse Mortgage. Reserved for seniors (60 years and older). No monthly repayments required. The loan is repaid upon the sale of the property or death. Ideal for helping children or improving lifestyle.

Financing Rules (LTV)

First-time Purchase (Residents): Up to 75% of the property value.
Home Improvement: Up to 70% of the value.
Investors / 2nd Property: Up to 50% of the value.

Main Interest Rate Types

Prime Rate: Based on the Bank of Israel rate (+1.5%).
Fixed Non-Linked Rate: Monthly payment guaranteed for life (Total Security).
Linked Rates (Madad): Capital adjusted according to inflation.

2. Refinancing (Mihsour)

Mihsour involves replacing your current loan with a new contract to lower the interest rate or reduce the monthly payment. It is a powerful financial lever for optimizing your assets in Israel.

            Why Refinance Today?
            Lower Monthly Payments: To provide more breathing room for your monthly budget.
Duration Reduction: To pay off your loan faster and save thousands in interest.
Exit Inflation Indexing (Madad): To stop the increase of capital due to inflation.

        

Real Success Stories:

Case A: Inflation Protection

Situation: A couple had a 1M NIS indexed mortgage (Madad). Their debt was increasing every month.

Action: Refinanced to a fixed non-linked rate. Result: Debt principal frozen and total security.

Case B: Duration Reduction

Situation: 20 years left at 5% interest. Action: Renegotiated to 3.5% over 15 years.

Result: Saved 5 years of payments (approx. 120,000 NIS in interest savings).

Case C: Internal vs. External Refinancing: We analyze whether it is better to renegotiate with your current bank or have a competitor buy out your loan for better terms.

3. Olim Hadashim Benefits (Zakaout)

As an Olé Hadash, you are entitled to a subsidized loan from the Ministry of Housing (Zakaout).

The Point System: The amount depends on your profile (age, children, years in Israel).
The Rate: Fixed at 0.5% below the market average rate (capped at 3%).
Duration: Repayable over a period of up to 30 years.

4. Why Use an Independent Advisor?

A Strategic Ally Against Banks

Navigating the Israeli banking system alone can be very expensive. A Yoetz Mashkanta is your ally to build a custom loan mix (Maslulim).

By putting banks in competition, he negotiates the lowest rates for you and simplifies all the bureaucracy.

A Profitable Investment

Expert fees are generally recovered within the first few monthly payments thanks to the thousands of shekels saved on the total cost of credit.

Summary of Key Steps

Step	Action
1. Ishour Ikroni	Bank's preliminary approval (valid for 24 days).
2. Shamaut	Property valuation by a bank-certified appraiser.
3. Insurance	Mandatory life and property insurance policies.
4. Signing	Final signature at the bank and release of funds.