Mortgages in Israel: a clear guide for olim and foreign buyers

An Israeli mortgage (mashkanta) is built differently from most mortgages abroad. The amount is capped by the Bank of Israel, the loan is split into several “tracks”, and each bank negotiates every rate separately.

How much can you borrow?

• Single home: up to 75% of the price.
• Replacing your home (you sell one and buy another): up to 70%.
• Investment property and non-residents: up to 50%.

The rest comes from your own funds. New immigrants buying their first home are generally treated as single-home buyers.

What the bank checks

• Repayment ratio: the monthly payment cannot exceed half of your disposable income, and most banks prefer to stay below 40%.
• Income stability: payslips, tax returns for the self-employed, and for olim and non-residents, income earned abroad.
• Valuation (shamaut): the bank sends an appraiser, and the loan is calculated on the lower of the price and the valuation.

The tracks (maslulim)

A mashkanta combines fixed-rate, prime-linked and index-linked tracks. Bank of Israel rules require at least one third of the loan at a fixed rate, over a maximum of 30 years. The right mix depends on your age, income and plans.

Why use a mortgage broker

A broker puts several banks in competition, negotiates each track and explains every step in your language. On Yad le Yad you can contact mortgage brokers directly.

The rules above are those known at the time of writing: confirm them with your bank or broker before deciding.