Mashkanta: Financing Your Property Purchase

Israeli banks offer mortgages to non-residents, typically financing 50-60% of the property value (LTV). You must demonstrate stable income and provide documentation including passport, proof of income (pay slips or tax returns), bank statements for the last 6-12 months, and a signed purchase contract. The minimum age is typically 20, with a maximum repayment age of 75.

Israeli mortgages offer several rate options: Prime-linked (variable, based on Bank of Israel rate), Fixed rate (for 5-30 years), CPI-linked (adjusted for inflation). Most advisors recommend a mix of rate types to balance risk. Foreign currency mortgages (USD, EUR) are also available but carry exchange rate risk.

Start by obtaining a pre-approval (ishur ekroni) from one or more banks. This takes 1-2 weeks and gives you a clear budget. After signing the purchase contract, you have 60 days to finalize the mortgage. Banks charge an arrangement fee (typically 0.25-0.5% of the loan). Using a mortgage broker can save time and help negotiate better terms.

Major banks offering mortgages to foreign buyers include Bank Hapoalim, Bank Leumi, Discount Bank, and Mizrahi Tefahot. Compare the effective interest rate (not just the nominal rate), arrangement fees, early repayment penalties, and flexibility of payment schedules. An independent mortgage advisor can typically save you 0.3-0.5% on rates.