Mortgages in Israel are booming. For almost a year now, we have seen an increase in the number of people who are able to purchase homes. In fact, in the first ten months of 2015, the number of mortgages totaled a whopping NIS 53.8 billion. Even with the holidays of Sukkot in October, and Yom Kippur and Rosh Hashanah in September, mortgages totaled NIS 4.6 billion and NIS 4.2 billion for these two months, respectively.
Causes of an Economic Boom
Many things have contributed to this surge in real estate. The first is the negligible mortgage interest rates, and the second is the announcement by the Minister of Finance that the purchase taxes on apartments bought for investments would soon be raised. The latter caused an upsurge in mortgages being brought forward and completed, resulting in an economic boom the area has not seen for a long time.
The Jerusalem real estate market is booming, especially with the increase in foreign buyers who have made Aliyah or intend to in the future. Jerusalem remains one of the top desired cities, making the search for apartments competitive and in very high demand.
Avoid making mistakes
Before taking out a mortgage loan, it is recommended that a potential home buyer consult first with a qualified and experienced mortgage broker. Mortgage brokers offer advice to the home buyer throughout the entire process, and can help the buyer decide on the amount of the loan that is appropriate for his or her finances. Working with a broker also increases the likelihood that the monthly loan payment will continue to be comfortable to the homeowner for the rest of the life of the loan.
Working with a competent mortgage broker is the first step to making sure you receive good advice on your loan and its terms.
Whether you’re a local buyer, or coming from abroad, now is an excellent time to purchase an apartment in Israel.