While waiting for the cancellation of perks, mortgage advisors continue to fly

Non-bank credit companies continue to offer mortgage advisors flights abroad as a reward for referring clients, while the market awaits a final decision from the Capital Market Authority on banning such incentives. The flights, including destinations like Las Vegas, Ibiza, New York, and Madrid, are intended to encourage advisors to direct borrowers to specific companies. The main problem: there are no professional or ethical requirements for mortgage advisors, and no oversight of conflicts of interest. An advisor can charge fees from both the client and the company. Advisor fees from clients can reach 30-50 thousand shekels per file, and sometimes even hundreds of thousands of shekels. Meanwhile, an advisor who markets enough loans enjoys commissions and flights from the financing entity. The result: a risk that the client will be directed to a company offering an inferior or more expensive solution, just so the advisor can meet a target for the next flight. The Capital Market Authority published a draft circular in May 2026 prohibiting such compensation. The comment period ended in June 2026, and about three months have passed since then. Concerns have been raised in the industry that the authority is dragging its feet, but the article notes that the timeframe is reasonable relative to the pace of similar regulatory design. Even if the circular is approved, it will only address the elimination of incentives from credit companies, not the excessive fees advisors charge clients. A bill to regulate mortgage advisors is still in the legislative stages. Credit companies responded that they operate according to the law and will comply with any regulatory prohibition.