Obtaining a mortgage in Israel can be arduous, so IsraFinance is here to help you obtain a mortgage with ease. Whether you are an experienced real estate investor, a first-time homebuyer, or a returning citizen looking to settle in Israel — we guide you to make wise decisions, whether you're considering an adjustable-rate mortgage for flexibility or a fixed-rate mortgage for stability in potentially volatile times.
The Israeli real estate market has unique characteristics that distinguish it from mortgages in other countries. Understanding the local regulations, loan structures, and special benefits available — especially for Olim — is critical to securing the best deal.
As your dedicated mortgage broker, we shop across all Israeli banks on your behalf, negotiate the best rates, and handle the paperwork — saving you time, stress, and potentially hundreds of thousands of shekels.
Can't find the answer you're looking for? Reach out to our team.
To qualify for a mortgage in Israel, you typically need a valid Israeli ID, proof of income, and a down payment of at least 25% of the property's value. Foreign residents may also need to provide a Credit Report.
The maximum loan-to-value ratio for mortgages in Israel is usually 75%, meaning you can borrow up to 75% of the property's value. Foreign residents can typically borrow 50% of the property value.
As part of a new mortgage, Olim are eligible for a loan of up to 200,000 shekels. The Ministry of Housing offers this loan with a maximum term of 30 years and interest rates that may be lower than a standard bank mortgage. As part of our service, we assist clients in maximizing all state benefits and provide the required paperwork to apply for a state loan.
As a prerequisite, all prospective homeowners must show proof of a monthly income — whether earned in Israel or overseas, including investment income. Your ability to repay is determined by your monthly income, not by your personal assets or current property.
Your ability to repay is calculated by your net monthly income. The Bank of Israel caps the debt-to-income ratio at 40%. For example, if you and your spouse have a joint net income of ₪10,000, your monthly mortgage contribution should not exceed ₪4,000.
Israeli banks provide a variety of mortgage options to customize a plan that works best for you. At least one-third of the mortgage must have a fixed interest rate. We will outline all implications and walk you through the various structural options so you can select the best fit for your situation.
The mortgage process has two stages:
We strongly advise waiting for final approval before signing a purchase agreement and retaining legal counsel throughout the process.
Interest rates vary depending on market conditions and the type of mortgage. Many borrowers take a hybrid of mortgage products. We recommend consulting with us individually — by shopping on your behalf across all banks, we secure the lowest rate and best overall package for your circumstances.
The maximum repayment term is commonly 30 years, though shorter terms are available depending on your preferences and financial situation.
