Mortgage in Israel

Most of the buyers need a mortgage to purchase their dream home.
Mortgage in Israel is different from most countries. Instead of getting one big loan, a mortgage in Israel is divided into several smaller loans. Each loan can be given to a different period of time and is linked to a different rate, such as prime rate, madad rate (cost of living index), foreign currency rate, or a fixed rate. 

Click here to read a complete guide to your mortgage in Israel.

Our mortgage broker partners, located in Tel Aviv, have helped hundreds and thousands of clients to get a mortgage on the best terms.
Let us take care of the process. We will adjust the mortgage structure according to your needs and future plans and save you time, effort, and thousands of dollars.

If you are about to purchase a property in Israel, contact us and promise yourself a better deal. 

Can a foreigner get a mortgage in Israel?

Yes. Foreigners, non-citizens, and non-Jews can apply for a mortgage in one of the Israeli banks.

How to get a mortgage in Israel?

1. Open a bank account in Israel (not a must, but it might help).
2. Apply for a mortgage, providing necessary documents according to your country of origin, such as ID, bank statements, income information, and so on.
3. Get pre-approved (ishur ikroni). Keep in mind that ishur ikroni is valid for a certain period.
4. Life and property insurance. After applying for a mortgage, the bank will require the buyer to take life and property insurances.
5. The mortgage will be transferred to the seller’s account according to the contract terms.
To ensure you get everything done correctly, get the right mortgage on the best terms, we highly recommend being helped by a mortgage broker.

Do I have to get a mortgage only from my bank?

No, you can apply to any of the banks, regardless of where your bank account is. You can check several banks, compare their offers, and bargain for the best rates. Or you can just hire a mortgage broker and let him do the job.

How much can I borrow for a mortgage?

If you are an Israeli resident with a local source of income, you can borrow up to 75% of the property value for the first or only property.
Investors and foreign residents usually can borrow up to 50%. However, in some cases, the amount can be increased.

What are the mortgage rates in Israel?

The average rates are about 2.5% (3% for above 25 years period), depending on the loan period and type, age of the borrower, income, and financing percentage.
The rough estimate is about 450 – 500 nis of monthly payment for every 100k nis borrowed.  

What is a tamhil?

Tamhil (mixture, combination) is a mixture of several smaller loans that make up one mortgage.
Each loan has its own rate and can be extended to a different period of time.
Some of the loans have exit fines – you might need to pay an exit fee if you want to repay a mortgage or this specific loan.
Each loan rate is affected by other loans in the tamhil; that’s why it’s important to assemble the best tamhil according to your future plans. 

What are the fees I can expect?

1. Mortgage brokerage fee (option): 10,000 – 1% (depending on the mortgage amount and complexity of the deal).
2. Origination fees: 0.25% (capped at 5-10k nis)
3. Smaller fees: About 1k nis.

Do new olim have mortgage benefits?

In general, new olim have no benefits regarding mortgage in Israel.

What happens when I sell my property?

Selling a mortgaged property isn’t a problem.
You can either repay the mortgage (certain loans have exiting fines) or transfer it to a new property you are buying.

Should I get a mortgage broker?

The process of getting a mortgage in Israel is often long, exhausting, and confusing, not to mention the complexity of the loan structure.
Having a broker is not a must, but as a rule, by trying by yourself, you will be given a mortgage package that is more beneficial to the bank rather than to you.

Our mortgage broker partners, located in Tel Aviv, have helped hundreds and thousands of clients to get a mortgage on the best terms.
Let us take care of the process. We will adjust the mortgage structure according to your needs and future plans and save you time, effort, and thousands of dollars.

If you are about to purchase a property in Israel, contact us and promise yourself a better deal. 

Ready for your home in Israel?