When is the right time to get your mortgage?
For most people, the “right time” to take a mortgage is not when the news is perfect, but when their own life and finances are ready. Right now in Israel, interest rates have come down from their highs, banks are competing harder for good customers, and many families are asking themselves if it is time to finally stop renting and buy a home.
Why now makes sense for borrowers
The Bank of Israel recently lowered the prime rate, which helps reduce monthly payments on many mortgages. This means a new mortgage today is usually cheaper than it was at the peak in 2023–2024, even if it is still more expensive than in the Covid years. You may not be getting the “cheapest in history” rate, but you are also no longer paying the “most expensive in years” rate.
You also do not need to guess the exact bottom. If rates go down more in the future, you may be able to change or refinance part of your mortgage later. If they go up again because of problems in Israel or abroad, you will be glad you locked in your mortgage earlier. In other words, acting now can give you more to gain than to lose, as long as your mortgage is built sensibly.
Look at your life, not just the news
The more important question for you is simple: “Am I personally ready?” If you have:
- A stable income
- A down payment saved
- Plans to live in Israel for the long term
then waiting just to “see what happens” with rates often does more harm than good. While you wait, you keep paying high rent, you do not build any ownership in a home, and you live with the worry that prices or rates might move against you.
A good mortgage is one that you can live with comfortably. That means a monthly payment that still leaves room for daily life: food, kids, holidays, emergencies. When the mortgage is planned well, it turns a big, scary number into one steady, predictable payment each month.
First plan the mortgage, then the apartment
Most people start by searching for an apartment and only afterwards think about the mortgage. That is backwards. It is much smarter to:
- Check how much you can safely pay every month.
- See how much the bank is likely to lend you.
- Decide what price range fits your budget.
Only then start looking for a property. This way:
- You do not fall in love with a home you cannot really afford.
- You know your limit before you negotiate.
- You can move fast when you find the right place, because your mortgage plan is ready.
How Blue Crown Capital can help you
You do not need to figure all this out alone. Blue Crown Capital can help you understand your numbers and options before you even start looking at apartments.
Together, you can:
- Check what monthly payment is realistic for your family.
- See how much you can borrow from the bank.
- Choose a mix of mortgage tracks (fixed, variable, prime) that suits your situation.
When you do this first, you go into the housing market calm and prepared, not confused and stressed. If you are thinking about buying a home in Israel, talking to Blue Crown Capital at the beginning can save you money, time, and sleepless nights— and help you take a mortgage at the right time for you.
For further information or to discuss your personal real estate financial goals – reach out to our team and we’d be happy to help.
Moshe Cohen, Blue Crown Capital: