Real estate investment in Israel

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Mortgages Finance and bank loan for Real Estate in Israel

Mortgages for foreign non-residents are available in Israel. The typical mortgage would be up to 60% of the Appraised Value, although you can also use EMI (Mortgage Insurance) as a way to increase the amount of your mortgage. On New Construction Projects in Israel, you can often get higher % Mortgages than on resale property, sometimes as much as 80% of the value. Feel free to contact one or more of the Israeli Banks mentioned on this site for further information.

Interest rates

Interest rates range - depending on the banks.
The financing by the bank may be up to 70% of the price of the property purchased.
It is needed to pay 15% of the total amount payable on the date of signing the contract.
This payment will be deposited in trusted hands of the Advocate of the seller until all vendor obligations are carried out. A fixed-rate mortgage loan is one where the interest rate does not change over the life of the loan. Since the rate remains constant, the monthly payment for interest and principal does not change. The primary advantage offered by this type of loan is that the borrower has a known monthly payment for the entire loan period.

the conditions for obtaining a mortgage loan

 The borrower must submit documents proving their ability to repay the loan: Records bank for the last three months, the last three pay slips (if employed), last year tax records.
The bank asks to be given various documents in the possession of a lawyer, such as the purchase contract signed , the identity of the seller, etc.

Home Equity loans

All mortgages require a registered lien in the land registry and often personal guarantees of the signators. Non recourse financing can sometimes be negotiated. Home equity loans (known as “all purpose loans”), are available for people who wish to borrow against the value of their home for purposes such as renovations, debt consolidation, business financing or even purchasing a second home. The interest rates are usually higher for this type of loan, than a regular mortgage.

mortgage advice

What you aren't hearing about is that the banks are starting to offer less attractive mortgages. It looks like the competition between the banks has run its course for now, and the crazy programs are a thing of history. Whatever you heard that your friend got three months ago is completely irrelevant today.


השקעות נדל"ן בישראל    Real Estate investment in Israel