Mortgage broker (yoets mashkanta): what they do and what they cost

What a mortgage broker does

Their work starts well before the bank and ends after funding.

1. They qualify your borrowing capacity. Financing cap by status, payment-to-income, age, which income counts (and at what percentage), documented down payment. They tell you, before you search, what property price is financeable. Many buyers discover here that their budget is 10 to 15% lower, or higher, than they thought.
2. They prepare the file in the format each bank expects: documents, translations, income declaration form, chain of evidence for the down payment (anti-money-laundering). A complete file at the first submission saves two to three weeks.
3. They compose the tracks. This is the heart of the job: how much in prime, how much in fixed unlinked, how much in CPI-linked, over what terms, according to your horizon (resale, inheritance, aliyah, retirement) and your risk tolerance. They respect the one-third-fixed rule and optimise the payment-to-income ratio at the moment the bank calculates it.
4. They file with three to five banks at once, and obtain a pre-approval (ishur ekroni) in 48 to 72 hours where an individual often waits one to two weeks, because they have a dedicated contact at each bank.
5. They negotiate. Margin on prime, fixed rates, file-opening fee (often brought down to zero), prepayment terms. They play one offer against another, figures in hand.
6. They coordinate the appraisal, the insurance (and steer you to a cheaper external policy than the bank’s), the signing, and the funding calendar with your lawyer so the money arrives before each contract deadline.
7. They stay available afterwards: for a prepayment, a michzur when rates fall, or a second purchase.

What they do not do

• They do not lend: the bank decides, and no broker can exceed the Bank of Israel financing caps (75 / 70 / 50%).
• They do not check the property: title, existing liens, permits, debts are all the job of the real estate lawyer. A broker who tells you "the property is clean" is talking about the bank appraisal, not the Tabu.
• They do not give tax advice: mas rechisha, tax residency, reporting the property in your home country belong to the lawyer or a tax adviser (see Shekel Guide for Israeli tax).
• They do not choose the risk level for you: they propose two or three mixes, you decide. Be wary of one who offers only one.
• They do not guarantee a rate: bank offers hold for 12 days, and a Bank of Israel decision can move everything.

When a broker is essential, and when optional

In the first case, the question is not "what does the broker cost" but "what does their absence cost": a non-resident filing alone at one bank frequently gets P − 0.3 and a fixed at 5.5%, where a specialised broker gets P − 0.6 and 5.1%. The difference is detailed on the page mortgages for non-residents. An oleh with no Israeli credit history is in the same position, with a higher cap: see mortgage for new olim. And before looking for a broker, check that your deposit is enough: how much deposit do I need.

Fees: what is charged

Three things to know. Israeli banks do not pay brokers: there is no hidden commission, which guarantees independence but is also the reason you pay. The fees must appear in a written mandate signed before any filing, with the scope (number of banks, follow-up to funding, michzur included or not). And the broker cannot be paid by the developer or the agency that recommended them without telling you: ask.

The typical saving, in figures

A broker’s gain comes from three sources that add up: competition between banks (0.1 to 0.3 of a point), the composition of the tracks (the right mix for your horizon, hard to quantify but often the most important) and the ancillary fees (bank file fee, insurance). Here is the effect of the rate gain alone.

On a ₪700,000 loan, the same reasoning gives a net gain of ₪30,000 to ₪35,000: still positive, but the ratio drops to three or four times the fees. Below ₪500,000, the consultation alone (₪500 to ₪1,500) is often the best value. To test your own figures, the Israeli mortgage calculator lets you compare two rates over the same term.

Broker or direct to the bank: the table

A frequent compromise: have the file qualified and the mix composed by a broker, then file yourself at your long-standing bank on top of their three banks. If your bank matches, you keep the relationship; if not, you know what you are losing.

How to choose your broker

• The licence. Since 2023, credit advisory requires a licence from the Capital Market Authority (rishayon yoets ashrai) and professional liability insurance. Ask for the number and check it on the public register. An unlicensed broker owes you no duty of loyalty and carries no insurance if their advice costs you money.
• Independence. They are paid by you and nobody else: no bank commission (illegal), no kickback from a developer or an agency. A "free" broker offered by a developer is paid by the developer, and their interest is that the sale goes through, not that you borrow on the best terms.
• The banks they work with. They must file with at least three of the five major banks and be able to tell you which one is aggressive this week on your profile. A broker who sends to only one bank is an introducer, not a broker.
• Volume and specialty. How many files a month, and how many of your type (non-resident, self-employed, off-plan)? A broker who does twenty salaried-resident files a month may not know the mechanics of a signing in New York with an apostille.
• Transparency of the mandate. Fees, scope, calendar, what happens in case of refusal. In writing, before the first filing.
• Method. They must present two or three mixes with, for each, the starting payment, the total cost and the payment if rates or inflation rise. If they only talk about "the rate", switch.

Red flags

• No licence number, or refusal to give it.
• "Free for you": someone pays, and that someone does not have your interests at heart.
• A single mix proposed, with no rate-rise or inflation scenario.
• A large CPI-linked share presented as "the lowest rate", with no explanation of the madad. It is the classic way of pushing through a payment-to-income ratio that is too high.
• One bank approached, always the same.
• Fees as a percentage of the loan with no cap on a simple file: 1% of ₪2.5M is ₪25,000 for work worth ₪10,000.
• Pressure to sign the sale contract before the pre-approval: the order is the reverse.
• A rate promised before they have seen your file.
• An undisclosed link with the agency, the developer or the lawyer who recommended them (the same independence rule applies to the lawyer: see how to choose your real estate lawyer).

The ten questions to ask before signing the mandate

1. What is your credit adviser licence number, and who insures you?
2. Who pays you, apart from me?
3. Which banks will you file my application with, and why those?
4. How many files like mine have you handled in the last twelve months?
5. What are your fees, when are they due, and what happens if no bank approves?
6. What borrowing capacity do you estimate for me, and on what basis?
7. Which track mixes do you propose, and what happens to my payment if prime rises two points or inflation goes to 4%?
8. Which bank fees do you think you can get waived?
9. How do you coordinate the funding calendar with my lawyer?
10. Will you follow up with a michzur if rates fall, and at what price?

Judge the answers against the page Israeli mortgage rates today: a broker who announces P − 1.2 or a fixed at 4.2% in November 2026 is telling you a story. And before talking financing, check the total budget of the deal on the page what buying really costs: the broker is one line among others.

Frequently asked questions

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