Origination fee (opening file fee)
The banks charge a fee of 0.25% of the mortgage as the origination fee.
Blue Crown Capitals clients receive up to a 50% discount on this fee depending on our arrangement with each bank.
When one buys a second hand property, the banks require an appraisal of the property. The cost of the appraisal depends of the value and size of the property. This ranges from 600 shekel for a standard apartment and upwards.
If one has obtained a mortgage for a self-build, the bank will most likely require an appraisal at different stages according to the release of payments.
Life and Property Insurance
It is a requirement of all banks in Israel that a life insurance policy is taken out for the lenders in the banks name for the size of the mortgage.
Some banks can be slightly flexible on this requirement depending on the circumstances.
In addition to life insurance, the banks require that property insurance is taken out for a portion of the properties appraised value.
There are a couple of additional costs to do with the mortgage which includes having documents notarized and registered. These usually do not amount to more than 1,000 nis.