Many new homeowners panic when they see their first mortgage payment in Israel.
Sometimes it’s hundreds or even thousands of shekels higher than expected. Other times it’s noticeably lower.
Usually, nothing is wrong.
The difference comes down to when your mortgage funds were released, how Israeli banks calculate interest before your first payment, and a few one-time fees that may also be included.
Quick Answer
If your mortgage was released
- Between the 1st and the 15th: Your first payment is usually the following month and may be smaller than normal.
- Between the 16th and the 31st: Your first payment is generally delayed an extra month and will often be larger than normal because it covers a longer period.
Your first payment may also include one-time fees such as file-opening or registration costs.
Why Does Your First Payment Work Differently?
Interest begins accruing on the day the bank releases the mortgage funds. Depending on when your mortgage is disbursed, your first payment may cover only a portion of a month or more than one month – as well as one-time fees.
After that first payment, your mortgage enters its regular monthly payment schedule.
Example 1: Mortgage Released Between the 1st and 15th
Let’s say:
- Your mortgage funds are released on January 5
- Your monthly payment date is the 15th
Your first payment will generally be on February 15.
Because that payment covers only part of a month, your first payment will often be smaller than your normal monthly payment.
Example 2: Mortgage Released Between the 16th and the End of the Month
Now let’s say:
- Your mortgage funds are released on January 22
- Your monthly payment date is the 15th
Your first payment will generally be on March 15, not February.
Because that payment covers more than a month, your first payment will often be noticeably larger than your normal monthly payment.
What Else Could Be Included In Your First Mortgage Payment
In addition to principal and interest, there are other charges that might be lurking in your first payment. These may include:
- The bank’s origination fee (דמי פתיחת תיק) – their fee for handling your file
- Various registration and other fees paid on your behalf and being passed on to you (e.g., אגרת רישום בטאבו, אגרת רישום ברשם המשכונות)
These one-time charges are perfectly normal and should not appear in future monthly payments.
What If My Mortgage Is Released in Multiple Installments?
Many home purchases in Israel involve several payments to the seller over a period of weeks or months.
When that happens, each mortgage disbursement follows its own payment schedule.
| Mortgage Disbursement | First Payment |
| January 5th | February |
| March 17th | May |
| April 10 | May |
This sometimes surprises borrowers because different portions of the mortgage begin repayment at different times.
As additional funds are released, your total monthly mortgage payment gradually increases until the entire mortgage has been disbursed.
What Happens After Refinancing
If you refinance your entire mortgage, the old mortgage is paid off and a new mortgage begins – and the same timing rules apply.
If you refinance only part of your mortgage, the portions that were not refinanced continue on their existing payment schedule. The refinanced portion begins a new payment schedule based on the date the refinance was executed, and the same timing rules apply.
Frequently Asked Questions
Usually because your mortgage funds were released later in the month. This pushes your first payment back an extra month, meaning it covers a longer period than a normal monthly payment. One-time fees may also be included.
If your mortgage funds were released earlier in the month, your first payment may only cover a partial month.
Most Israeli banks allow borrowers to choose from several monthly payment dates, commonly the 1st, 10th, or 15th.
Yes. Each mortgage disbursement begins accruing interest when the funds are released and follows its own payment schedule.
No. Depending on when the mortgage funds are released, your first payment may be higher, lower, or similar to your normal monthly payment. The timing of the disbursement is one of the main factors.
Final Thoughts
Your first Israeli mortgage payment is often different from every payment that follows.
Understanding how mortgage disbursement timing affects your first payment can help you avoid unnecessary stress and make it easier to understand the numbers coming from your bank.
If your first payment looks surprisingly high or low, don’t assume something is wrong. First, check when each portion of your mortgage was released, when your payment is scheduled, and whether any one-time fees were included.
And if you’re preparing to take out a mortgage or refinance in Israel, understanding this before the money is released can save you from a very confusing surprise when that first payment appears.
