The common mistake that 90% of mortgage takers make and how you can avoid falling into the trap
Every year hundreds of thousands of families take out a mortgage to purchase a property for residence or investment. Many of them make a mistake that costs them dearly and can be avoided with the right considerations.
The mistake is to aim for the lowest interest rate. Why?
Although the amount of interest you will receive is an important element of the mortgage, it is not the most important. The most important factor is the mortgage mix!
The mortgage mix is actually the composition of the routes, the repayment period and the interest rate.
If we bargain only for the cheapest interest rate, in many situations the bank will willingly grant the request because in the rest of the parameters it will be able to make a handsome profit on the deal.
On the other hand, if the negotiation addresses all three parameters, in a way that suits you best, the bank may be less satisfied, but you will be more protected for many years.
For example, in track A: the low interest rate is offered, linked to the index compared to track B which offers a higher interest rate, not linked. Seemingly, with a non-professional eye, it seems that route A is better. At the same time, after a few years, track A customers will find that they paid dearly compared to track B customers, certainly in a period of rampant inflation.
What is the secret to a profitable mortgage over the years?
First planning, and it is better to plan as early as possible. In such early planning it is important to consider the following parameters – in the order of priority indicated:
Adjusting the amount of the monthly repayment to your true ability
The type of route and the composition of the routes
the loan period
the amount of interest
When these considerations are taken into account, the pieces of the puzzle fit into a complete and high-quality picture – an optimal mortgage.
Meet Alexandra Seidenberg, economist, director of the mortgage and home economics department. Alexandra has 35 years of experience in finance, an expert in financing real estate transactions and a financial planner for increasing family capital
Alexandra has dealt with finances most of her life. In her first career, in various positions in a large bank in Israel and later as a freelancer helping businesses and families build the financial future they aspire to.
Her professional vocation is to lead the family through significant financial junctures in life – buying the house of their dreams or buying an investment property.
She helps make this dream come true under the most profitable conditions, with a minimum of “headaches” with the banks, and with an examination and accuracy of the cash flow of buying versus selling.
The service includes:
Initial analysis of the needs – defining the amount of the mortgage, according to the price of the property and the equity, including reference to taxes, renovation expenses and any other expenses that should not “surprise” you.
Customization of the mortgage for the customer – construction of several possible mortgage routes, including simulation and assistance in choosing the route that best meets the needs of the customers. In the process, we will refer to the possible monthly repayment for you, without the expense being “stifled” on an ongoing basis.
Representing the clients in front of the banks: negotiating the best terms, obtaining approval in principle, submitting a mortgage file, assisting in the advancement of the processes until the signing of the mortgage.
Before signing a contract – building a cash flow of buying versus selling to avoid cash gaps that could lead to agreed compensation payments and unpleasantness.
This service saves customers a great deal of time, dealing with bureaucracy,
Comparisons of conditions between the banks and heartache in dealing with cumbersome systems.
The customer’s confidence in receiving the best conditions with minimal risk is the most important product in the process.
