Since the outbreak of the corona, many changes have taken place in the mortgage industry, including: the Bank of Israel’s decision to allow banks to freeze monthly repayments until the end of 2020
Recently, a decision was even made to abolish the prime limit on mortgages
About a decade ago, the Bank of Israel set a limit for taking part of the loan in addition to the prime interest rate, which stemmed from a desire to help mortgage borrowers reduce the risk of taking out a housing loan for many years. The restriction stipulated that the linkage component to the prime interest rate on the mortgage would be only up to 33% of the mortgage.
The low interest rate in recent years has led the Bank of Israel to announce the cancellation of the restriction, and stipulating that the restriction on a prime-linked loan will be up to 66%, the mortgage balance (34%) will have to be at a fixed and known interest rate.
Due to this provision and a decrease in the bank’s profitability in the loan, the banks compensate themselves for the loss by raising the interest rate, this is exactly where the role of Noa Gal And the staff at the company Wisely – financing, investments and mortgages.
Many years of experience of Noa Gal In the field of mortgage advice and familiarity with the banking system in our area, it helps to give customers the best terms for them by bidding with a number of banks on each application.
The mortgage field is very complex and requires a lot of professional knowledge, only an external mortgage advisor to the bank will be able to present the client with the broadest picture, relying on all his personal, family and employment data, and manage the process so he can get the best and most suitable mortgage. .
We met with Noa Gal, Owner and CEO of a company Wisely – financing, investments and mortgages For a fascinating, instructive and enlightening conversation.
Noa Gal – Owner and CEO of ‘Wisely – Financing, Investments and Mortgages’
Many young couples have taken out mortgages, and alongside them they also have quite a few bank loans. The economic burden is not easy and simple. What is the solution for them?
“We are approached by a company, quite a few customers whose financial burden is very heavy. The scope of their loans, which consists of mortgages, loans, credit card charges, which are a loan for anything and everything. We provide them with a service that brings significant savings for them. In the family budget. “
“I will give one example of a case that I have finished dealing with in the very last few days, a couple of earners who usually earn about NIS 22,000 came to me for advice and during this period their monthly income dropped to about NIS 18,000. They have an apartment that cost NIS 1.8 million, and a mortgage of NIS 500,000. In addition, they have loans of NIS 200,000. Their monthly repayment on the loans and mortgage was about NIS 11,000. This means that every month current expenses and loan repayments have caused them a growing economic pit, and they are sinking deep inside. Our skill and experience allowed the couple to consolidate the mortgage and bank loan into the mortgage, extended the repayment period, reduced the interest rates and managed to reduce the monthly repayment to about NIS 4,000. We have created a positive cash flow for the family, a considerable amount of money is saved for them every month, thanks to our professional knowledge, our ability to see the whole picture and help the family get through the new situation created in the best way for them. “
Many people reach old age when they own a mortgage-free residential property, and sometimes they need money for health care, moving to a nursing home or sheltered housing, a trip around the world (hoping we can get back to that soon) and sometimes they want to help their children. What financial solution can be offered to this age group?
In light of the increase in life expectancy, a number of banking entities have been able to provide diverse solutions for the elderly, she explains to us. Noa, And it offers seniors unique and tailored mortgage routes for them.
“Mortgage on special terms, given to seniors, residential property owners who have passed the age of 60 will be able to get a loan (mortgage) in a property mortgage for any purpose – medical care, living, help for children, marriage and more. In addition, the mortgage can be obtained on special terms by replacing the regular mortgage with a senior mortgage in accordance with the special conditions of the financing entity, because there are several entities that have adapted conditions for this target audience, we examine the application and according to the customer’s special details.
Loan amount bA special mortgage for the elderly depends on the value of the property, the location of the property, in some banks we will receive up to 45% financing of the value of the property. In banks and other entities, we will be examined according to the youngest age of the borrowers and we will be able to obtain a higher mortgage the higher the age at 60 – 15% -20% of the value of the property and over 90 55% maximum.
Noa Explains to us that many seniors prefer to move to a nursing home, or receive a kind of additional allowance for their income – the ‘flexible supplement to income’ route, then different conditions will be set in the mortgage agreement. In this route, the mortgage is given in installments for the requested period, once a month and for a maximum of 15 years, in a credit card with a fixed and renewable monthly limit.
And more adds Noa, “We know how to give the advice in accordance with each and every customer” because we know the conditions given in the whole market and even if a certain bank refused the request, it is possible that another person knows how to respond to these conditions. Therefore in any case it is worth taking a mortgage adviser but for seniors even more due to the different and very diverse conditions that exist in the market.
Business life is not easy in the State of Israel. Banks make it difficult to provide loans to businesses in areas of business that are considered risky, for example: the restaurant industry, clothing stores, various service providers and more … We all hear about the difficulties faced by business people, and their need to inject money into the business, how can they be helped?
“Our main occupation is in society,” she tells us Noa“” It provides creative solutions for many types of income. For example, a company that has a cash flow problem can be helped to take out a business mortgage when the company owners have private assets. For example, company owners who recently assisted, applied for a state-guaranteed loan to start a profitable business. “According to the terms of the loan guaranteed by the state, they should leave as collateral 25% of the value of the loan (NIS 75,000), and the monthly repayment would have been about NIS 5,500 a month.”
“Instead, with our help, each of the partners took out a business mortgage and poured NIS 300,000 into the business, and the monthly repayment was only NIS 900 for a total of about NIS 1,800 a month. They did not have to give up 25% of the loan as security, as in the case where they would have taken the loan with a state guarantee, and also saved thousands of shekels in the monthly repayment. “
Sounds fascinating, who thought it was possible to save thousands of shekels in mortgage repayments for a residential apartment or for the benefit of the business, just through professional advice.
What about someone who has money and wants to invest and increase the return?
“One of the areas of activity of Wisely – financing, investments and mortgages, “Tells us Noa“He is attracting investors. We know how to present and recommend to our clients business opportunities in real estate-based investment in Israel and abroad. For several years, free money, which lies within the banking system in Israel, does not know how to generate a return, our clients, for example, can Get a mortgage on a property with an interest rate of 4%, and use the money in an investment whose return is 8% -12% annually received once a quarter, also pays the client’s mortgage and a little more goes into the annual cash flow, if the money exists in the current income For an investment of NIS 150,000, we can generate an annual income of NIS 12,000 – about NIS 1,000 per month. An investment of 500,000 will generate an annual income of NIS 60,000 about NIS 5,000 per month “In addition, at the end of 4 years, investors will receive an additional return that will increase their annual return to about 12% retroactively.”
“Of course there are other services we provide in the company, and each of them is provided after professional advice and understanding of the needs and capabilities of each and every customer. We do not sell a shelf product, but suitable for each customer, the service tailored specifically for him. All if the customer has an apartment or property Commercial owned by him “concludes WellEh.
Wisely – financing, investments and mortgages
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