Mortgage refinancing is one of the smartest financial moves a homeowner can make — and at Versano Group, this is one of our core specialties. Over the years, we've saved our clients millions of shekels through smart, precise refinancing.
What is Mortgage Refinancing?
Refinancing means repaying your existing mortgage and taking out a new one — on better terms. Essentially, you're "buying" your money more cheaply. When market conditions change, and especially when rates have dropped, refinancing can dramatically reduce your monthly payment.
When Does Refinancing Pay?
- Market rates dropped: If average rates dropped by 0.5%+ since you took your mortgage — worth checking
- Improved financial situation: A raise, inheritance, large bonus — can improve your rating and enable better terms
- Life change: Marriage, new child, divorce — all change the ideal mortgage mix
- 3–5 years have passed: This is the right time to reassess your terms
- Current mix doesn't fit: Too much variable rate exposure, or the opposite
Early Repayment Fee
Before refinancing, you must understand the early repayment fee — the amount the bank charges for closing the mortgage early. This fee is calculated differently for each track:
| Track | Fee Calculation | When Is There a Fee? |
|---|---|---|
| Fixed CPI-linked rate | Based on interest differential | Almost always |
| Fixed non-linked rate | Based on interest differential | Usually yes |
| Prime rate | Minimal (0.1% per year) | Very low |
| Variable (every 5 years) | No fee at change point | Only between change points |
The Refinancing Process Step by Step
Step 1 — Feasibility Check
The first step is to check whether refinancing is worthwhile. At Versano Group, we perform a full analysis: current debt balance, repayment fee, possible new terms — and projected savings.
Step 2 — Getting the Debt Balance & Fee
Contact your current bank and request a "balance for repayment" document including the early repayment fee for a specific date. The bank is required to provide this within 5 business days.
Step 3 — Bank Tender
Critical step! Contact at least 3–4 different banks and request quotes. Each bank will offer something different — and differences of 0.3%–0.5% in interest rates are common. An experienced mortgage advisor knows how to run this tender and extract the best offer from each bank.
Step 4 — Building the Optimal Mix
Not all mortgages are equal. The right mix — combining fixed and variable tracks — has a tremendous impact on monthly payments and total interest paid. We build a personalized mix for every client based on their financial profile.
Step 5 — Signing & Completion
After choosing the bank and mix, you sign the new mortgage, the new bank closes the old one — and you start paying less from that same month.
5 Common Refinancing Mistakes
- Not checking the repayment fee: Sometimes the fee cancels out all savings. Always calculate first
- Only approaching your current bank: Your bank won't necessarily offer the best deal. Always run a tender
- Refinancing without a professional advisor: A good advisor earns their fee twice over — they save you far more than they cost
- Focusing only on monthly payment: Sometimes extending the loan lowers the payment but raises total interest. Always see the full picture
- Waiting for the perfect moment: There's no perfect moment. If the savings exist — act
How Much Can You Save?
| Mortgage Size | Rate Reduction | Monthly Saving | Total Saving |
|---|---|---|---|
| ₪800,000 | 0.5% | ~₪250 | ~₪60,000 |
| ₪1,200,000 | 0.5% | ~₪380 | ~₪90,000 |
| ₪1,500,000 | 0.7% | ~₪650 | ~₪156,000 |
| ₪2,000,000 | 0.7% | ~₪860 | ~₪207,000 |
Why Choose Versano Group for Refinancing?
- We identify precisely when refinancing is worthwhile — and when it's not
- We run a professional bank tender to extract the best possible offer
- We build a personalized mix balancing certainty and savings
- We accompany you from the first call to the last signature
- We save you tens of thousands of shekels — guaranteed
Your first meeting with us is always free and non-binding. We analyze your mortgage, calculate the projected savings — and then you decide. Nothing to lose.
Want Personal Professional Advice?
Our team at Versano Group is available for a free, no-obligation consultation.
We'd be happy to answer any question and find the best solution for you.
