The Ministry of Construction and the Banking Supervision Department announce a further extension of the process of refinancing mortgages

In accordance with a decision by the Ministry of Construction and the Banking Supervision Department, and for borrowers’ benefit, the process to encourage refinancing of mortgages for eligible borrowers has been extended by an additional four months, to December 31, 2015.

The Ministry of Construction and the Bank of Israel call on the public to obtain information and to make an easy examination of the worthwhileness of refinancing—by enquiring at bank branches  or by visiting the websites of the Bank of Israel  and the Ministry of Construction. Many borrowers will discover that the refinancing being offered could lead to savings of thousands of shekels over the life of the mortgage, so that every month that passes results in loss to those who do not refinance.

On December 30, 2014, the Ministry of Construction, together with the Bank of Israel, announced a process to encourage the early repayment, or refinancing, of State mortgage loans for eligible borrowers. These loans were granted at higher interest rates than are currently available in the mortgage market. In this process, borrowers who took out such mortgages are permitted to repay the loan, or to refinance it, in a simple and rapid process, according to the conditions set out, with the only fee charged being a fee for changing the terms of the loan, which will not exceed NIS 120.

In view of the importance of this process, which is intended to make it easier for borrowers to meet their obligations, and in order to enable additional borrowers to utilize the process, it has been decided to extend the deadline for refinancing of mortgage loans for eligible borrowers in a rapid and low-cost track, to December 31, 2015.

It should be noted that today it is even more worthwhile, as in line with a circular published by the Capital Markets, Insurance and Savings Division at the Ministry of Finance, the insurance company that administers the life insurance policy purchased together with the mortgage loan shall enable a borrower wishing to refinance the mortgage to continue the existing insurance coverage under the same terms without requiring medical underwriting.
Bank
Phone # for the Public Enquiries Unit at the bank
Fax # for the Public Enquiries Unit at the bank
Electronic enquiry (email or automated form)
Bank Leumi Ltd.
076-8857011
076-8858688
 
Bank Hapoalim Ltd.
 
 
03-5673697
03-7136146
Mizrahi-Tefahot Bank Ltd.
 
03-7549216
03-5754452
Israel Discount Bank Ltd.
03-5153441
03-5153263
 
First International Bank of Israel Ltd.
03-6253270
03-6253277
Union Bank Ltd.
 
 
03-5191539
03-7956931

 
[1] A table of public enquiry contacts is attached.
[2] A questions and answers file on the Bank of Israel’s website (in Hebrew) can be found here.