Mizrahi-Tefahot Personal Loans: What Changes If You Have a Mortgage

At a glance

Mizrahi-Tefahot was formed in 2004 when Bank Mizrahi and Bank Tefahot merged, and it has been the country’s largest mortgage lender ever since. That matters for a personal loan in a very direct way: if you already carry a mortgage, it is the first thing standing between you and a new instalment.

Why the mortgage comes first

1. It occupies your monthly room: a housing repayment is usually the largest fixed commitment in the file, and every lender counts it before considering anything new.
2. It is visible either way: the Bank of Israel’s Credit Data Register shows existing credit, so there is nothing to be gained by leaving it out of the conversation.

The two shapes a rate can take

1. Fixed: the instalment stays where it started, whatever happens to rates during the term.
2. Prime-linked: the cost follows the Prime rate up and down, which can help or hurt depending on the cycle.

Before you take the first offer

Terms in Israel must be disclosed in a standard format, so proposals really can be compared line by line. The guide below covers the documents, the stages of the application and what to ask before signing.

If you already hold a mortgage, work out your remaining monthly room before you request anything — the guide shows how.

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