Origination fee (opening file fee)
The banks charge a fee of 0.24% of the mortgage as the origination fee for new mortgages or refinancing existing mortgages.
Blue Crown Capitals clients receive up to a 50% discount on this fee depending on our arrangement with each bank.
The banks will require an updated appraisal of the property to be refinanced. 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.
Assuming the value of the property has increased since the original appraisal was done, this will lower the level of financing. (LTV – Loan to Value)
Life and Property Insurance
When refinancing an existing loan, one will need to update the life and property insurances accordingly.
There are a couple of additional costs to do with the mortgage refinancing. These costs will depend on whether the mortgage is refinanced within the original bank or if the mortgage is moved to a new bank. These usually do not amount to more than 1,500 nis.