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First, I have to apologize for not writing for almost a month, I was just in reserve duty and there maybe I talked about mortgages but it was hard for me to write in an orderly manner.
I have to say that the reserve period gave me many ideas for new posts, there are just so many questions that raise great ideas for posts.
Today I want to talk a bit about mortgage insurance – what is it? Where should I do? And how do you start with a true market survey?
Let’s start with a brief explanation of what mortgage insurance needs and how much it costs, and finally give you a tip on how to do a quick market survey among several companies.
The bank is about to give you a loan of several hundred thousand shekels. It is true that it is “protected” by placing your apartment, but a bank like every bank thinks about the worst case scenario and prepares itself for it.
Therefore, he asks you to do two types of insurance:
The bank wants you to make life insurance because it wants to insure itself against the death of one spouse (and if you take your own mortgage, he wants to insure himself from the death of taking the only loan).
You ask why? It is very simple, we will explain by example.
Imagine that the bank gives you a mortgage of NIS 1 million and is based on the income of both spouses (the husband earns NIS 15,000 and the woman has NIS 5,000). The monthly repayment is NIS 6,000. Everything is good and good in the early years and the mortgage is paid as a series.
Suddenly, not us – the husband died, and suddenly the woman who until now was based on the husband’s salary remains with a mortgage of NIS 6000 when she earns only NIS 5000. We all know that she will not be able to pay the mortgage and therefore the bank does not want to risk and asks you to make life insurance in case one spouse dies.
In such a case he simply sues the insurance company, gets the money from them and you finish with the mortgage.
You will or will not, your home is not really yours but belongs to the bank more than it belongs to you (you owe him several hundred thousand shekels).
Therefore, the bank wants to ensure that the property is in order and that nothing will happen to it that will reduce its value. This is exactly why he asks you to make property insurance to ensure that the house stays in place in the event of breakdowns, pipeline explosions, etc. Another thing that the bank wants to insure is a case in which the property will lose its value altogether, for example in a huge fire or an earthquake, With a mortgage of several hundred thousand shekels, without an apartment (it was burned) and you probably can not pay the bank the debt, the bank is aware of this and ask you to do property insurance and thus promise that if the disaster happens the insurance company will finance the cost of rebuilding the house.
Basically the cost of insurance varies from customer to customer.
The cost of life insurance depends on your health, your age, the amount of cigarettes you consume per day (I hope you do not smoke), and the insurance company where you make the insurance.
In insurance for a property, the price depends on the condition of your apartment and the cost of its re-establishment (insurance for a 100-meter apartment in Dimona will cost more than the insurance of a 50-meter apartment in Kfar Shmaryahu), because the insurance examines how much it will cost them to rebuild the house.
I do not have exact prices to give you, but I can give you a small tip to do a market survey, click on this link and fill in your details . I pass the above information on to several insurance companies, they will contact you and give you quotes. Make the cheapest offer, but you can quickly know how much the mortgage will cost you (which is an amount you should prepare for before you take a mortgage and not only remember it at the end).
You can also leave the details on the form below and one person will perform a price comparison for you between all the mortgage insurance companies:
Your profit from leaving the details is that you get bids from a number of factors that do not depend on each other and therefore compete with each other for the price. Another huge profit is that you do not do this survey after you sign the mortgage but in advance, which will help you a lot in bargaining between the companies (usually what happens is that everyone rejects this decision for the end and because of pressure they do it at the bank’s company) The story and worse make sure you are not covered with all the necessary coverages).
So here’s the link to leaving the details and I promise to write another 2 important posts on the subject (one on the required coverings and the other whether you should do mortgage insurance through the bank or not ).
In the meantime, all of you will have a nice day and good luck!