Mortgages

How to finance your property in Israel

Mortgages

Anyone who purchases Israeli property can apply for a mortgage with an Israeli bank. Banks will charge a fee for opening a mortgage file which can be as much as 0.5% of the amount of your mortgage.

To get a mortgage, your property must be insured. Many banks will offer you a standard property insurance policy.

Some banks require you to have the property inspected before they finalise the mortgage contract.

Mortgages cover up to 70% of the price of the property. Banks will give you a mortgage provided you can show the following documents:

  • last two years' tax returns
  • last three month's bank account statements
  • two forms of identification (e.g. driver's license, Israeli identification card)
  • some banks may also require your credit score

Mortgage insurances

After receiving a mortgage, you may also get additional assistance using EMI (mortgage insurance). This insurance can extend the coverage of your mortgage an extra 10% of the house price.

Foreign non-residents who purchase a second home abroad typically receive less mortgage than residents (usually a maximum of 60% of the property value). Like residents, they can buy a mortgage insurance in order to increase the percentage of the property value that the banks are willing to finance.

Further reading

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