Mimondlan Saves Jerusalem Real Estate Developer 1.68 Million Shekels in Annual Interest
A real estate developer in Jerusalem faced losing a major deal after being repeatedly rejected by banks and forced to resort to expensive non-bank financing, which required mortgaging three properties. The developer turned to Mimondlan, a financing consultancy, which took on the complex case and successfully returned it to the banking system under attractive interest terms. Mimondlan negotiated with one of Israel's largest banks, presenting a solid portfolio and the project's significant future potential, leading the bank to provide full new financing.
This refinancing reduced the developer's monthly interest payments from 340,000 shekels to 200,000 shekels, saving 140,000 shekels monthly and 1.68 million shekels annually. Additionally, Mimondlan arranged for the release of two of the three mortgaged properties, leaving only the purchased plot under lien, thus granting the developer greater financial flexibility and opening opportunities for further real estate transactions.
Moreover, Mimondlan crafted a unique payment mechanism granting the developer a full interest payment exemption for the upcoming year until the construction financing phase begins, without incurring compound interest or future penalties. Company owners Matityahu Vagshal and Eli Rabinovitz emphasized that even clients previously rejected and financially stretched in the non-bank market can return to favorable banking conditions, save millions, and secure new business possibilities. This case highlights the critical role of expert financial advisory in navigating Israel's competitive real estate financing landscape.
