The 5 Most Costly Mistakes People Make When Taking Out a Mortgage

A mortgage is the biggest financial commitment in most people's lives. The difference between a good mix and a mediocre one can reach hundreds of thousands of shekels over 25 years. These are the five mistakes we see most.

1. Going only to the bank where you hold your account

Your bank won't necessarily give you the best offer. Personal familiarity means nothing against the numbers. It's always worth comparing several banks - the rate gap between offers on the same deal can reach tenths of a percent, and that translates to tens of thousands of shekels.

2. Looking only at the monthly payment

The monthly payment isn't the only metric. A longer loan gives a lower monthly payment - but costs far more overall. The right question is how much total interest you'll pay over the whole period, not just how much leaves your account each month.

3. A mix that doesn't fit your life

A mix isn't one formula that fits everyone. It needs to fit:

• The stability of your income
• How long you plan to stay in the property
• Your ability to absorb a rate increase
• Money expected to come in the future (inheritance, a grant, selling an asset)

4. Ignoring early-repayment fees

A fixed linked-rate track can incur a significant early-repayment penalty if you want to refinance or sell. This doesn't mean avoiding it - it means knowing about it in advance and pricing it in.

5. Not checking eligibility

Many couples are eligible for an eligibility loan on preferred terms and don't know it. Programs like the Buyer's Price, or special eligibilities, can also change the picture. It's worth checking before you start.

The bottom line

Most of these mistakes stem from lack of information and time pressure. A good mortgage advisor does exactly that: brings the information, manages the negotiation with the banks, and builds a mix that fits you - not the bank.