Israel Real Estate Guide
Israeli Mortgages for Foreign Buyers
Can non-residents get a mortgage in Israel? Yes — with conditions. Here is what the Bank of Israel rules allow, what lenders require, and what to expect.
The Short Answer
Non-residents (foreign nationals who do not hold Israeli citizenship or permanent residency) can obtain a mortgage from Israeli banks, but are subject to stricter loan-to-value (LTV) limits than Israeli residents. The Bank of Israel's macro-prudential rules cap non-resident mortgages at 50% LTV on a primary purchase, meaning you must bring at least 50% of the purchase price in equity. This is the single most important number to understand before beginning your search.
Loan-to-Value Rules
Bank of Israel LTV Limits (2025)
| Buyer Type | Max LTV | Min Equity Required |
|---|---|---|
| Israeli resident — first property | 75% | 25% |
| Israeli resident — second property | 50% | 50% |
| Non-resident (foreign national) | 50% | 50% |
| Non-resident — investment property | 50% | 50% |
Source: Bank of Israel Supervisor of Banks directives. Rules are subject to change; verify current limits with your mortgage broker before proceeding.
Eligibility
What Israeli Banks Require
Proof of income
Two to three years of tax returns or equivalent income documentation from your home country. Israeli banks will typically require a certified translation into Hebrew or English.
Credit history
A credit report from your home country. US buyers can provide a standard credit report; Israeli banks are familiar with FICO scores. A score above 700 is generally required.
Passport and identity documents
Valid passport. US citizens should also provide their Social Security Number, as Israeli banks are required to collect this under FATCA reporting obligations.
Bank statements
Typically six to twelve months of bank statements demonstrating the source of funds for the equity portion of the purchase.
Property appraisal
The bank will commission an independent appraisal (shuma) of the property. The mortgage is based on the lower of the purchase price or the appraised value.
Interest Rates
Mortgage Rate Structure in Israel
Israeli mortgages are typically structured as a combination of fixed and variable rate tranches, denominated in NIS. The most common structure splits the loan into three tranches: a fixed-rate NIS tranche (kalatz), a variable-rate NIS tranche (prime-linked), and sometimes a CPI-linked tranche. As of mid-2025, with the Bank of Israel base rate at 4.5%, typical blended mortgage rates for non-residents range from 5.5% to 7.5% depending on the tranche mix and the borrower's profile.
Rates are indicative only and change with Bank of Israel policy. Obtain a formal mortgage offer (ishur ekronim) from at least two banks before committing.
The Process
Steps to Obtaining an Israeli Mortgage
Engage a mortgage broker
A licensed Israeli mortgage broker (yoetz mashkanta) can approach multiple banks simultaneously and negotiate terms on your behalf. Their fee is typically 0.5–1% of the loan amount, paid on completion.
Obtain pre-approval (ishur ekronim)
Before signing a purchase contract, obtain a preliminary approval letter from at least one bank. This confirms the loan amount and indicative rate, and is valid for approximately 30 days.
Sign purchase contract
Your Israeli attorney (who must be independent of the seller's attorney) will review and negotiate the purchase contract. The contract is typically conditional on mortgage approval.
Bank appraisal and final approval
The bank commissions a property appraisal. Once complete, the bank issues a final mortgage approval and the loan documents are signed before a notary.
Completion and registration
Funds are transferred on completion. The mortgage is registered as a lien (mashkanta) on the property title at the Israel Land Authority. This process takes 30–90 days after completion.
Alternatives
Financing Without an Israeli Mortgage
Many international buyers choose to finance Israeli property purchases without an Israeli mortgage, using one of the following approaches:
Home equity line of credit (HELOC) in home country
US buyers with significant equity in US property can draw on a HELOC at US rates, which are often more favourable than Israeli mortgage rates for non-residents.
Portfolio lending
Private banks and family offices can arrange portfolio loans secured against investment portfolios rather than the Israeli property itself. This avoids Israeli LTV restrictions entirely.
Cash purchase with deferred financing
Some buyers complete in cash and arrange financing after completion, once Israeli residency or a longer track record with Israeli banks has been established.
Discuss Financing Options
Our advisors work with trusted Israeli mortgage brokers and can introduce you to the right specialist for your situation. Schedule a call to discuss.
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