Full support for home buyers — from understanding your budget to receiving the keys.
Buying a home is one of the biggest financial decisions you'll make. I guide you through the full journey — from mapping your capacity and equity, to building the optimal mortgage mix, to negotiating the best terms with the banks.
The service includes eligibility checks, budgeting (including ancillary costs), coordination with lawyers and appraisers, and full guidance throughout.
Buyer's guide
A purchase mortgage covers two very different transactions: buying a new apartment from a developer (including off-plan) and buying a second-hand apartment from a private seller. Both are mortgage-for-purchase cases, but the documentation, payment schedule, execution timing, guarantees, appraisal and bank process can differ.
In a developer transaction, payments are usually made in instalments, following construction progress or the schedule set out in the contract, and sometimes against statutory guarantees.
In a resale transaction, payments are agreed with the seller, an appraisal of an existing property is normally required, and rights registration and security arrangements must be handled.
The underlying principles are similar in both routes — equity, repayment capacity and credit profile — but the practical preparation differs. Exact requirements vary between banks and between transactions.
When assessing a mortgage application, a bank does not look only at salary and property value. The review covers the overall risk profile of the borrowers and of the transaction.
As part of the assessment, the bank may also review the borrower's credit data and overall financial conduct, subject to applicable law and the required consent and process. How much is reviewed depends on the data available and on the application.
Not every bank reviews every item in every case. These are factors a bank can take into account, depending on the data available and on the application.
Banks assess the expected monthly mortgage payment against net disposable income, after relevant fixed commitments. The higher your existing obligations, the lower the repayment a bank will be willing to approve.
See repayment ratio and financing limitsA bank can decline a mortgage application even when income appears sufficient, if the credit profile, repayment history, existing debt burden or other risk indicators are not acceptable to that bank.
A negative credit report does not automatically cause a refusal. The decision is bank-specific and based on the overall risk assessment of the borrower and the transaction.
The list varies between banks and transaction types, but most applications include:
Before signing a purchase agreement or committing to a payment schedule, it is important to assess financing capacity, repayment ratio, credit profile, available equity and the requirements the bank is likely to raise. An initial financing assessment prevents irreversible commitments.
I work for you — not for the banks.
Get a financing assessment before you signThis page is general information and is not legal advice or a commitment to approve financing. Actual terms are set by the bank based on the borrowers' details and the transaction.
Regulation & financing
The Bank of Israel sets maximum LTV (loan-to-value) limits by buyer type, plus rules on the repayment-to-income ratio. These rules determine the equity you need and the largest mortgage a bank is allowed to approve.
| Buyer type | Max financing (LTV) | Equity required | Notes |
|---|---|---|---|
| First home (single-home buyer) | Up to 75% | At least 25% | The highest ceiling; still subject to affordability. |
| Replacement home (upgraders selling the current one) | Up to 70% | At least 30% | The previous home must be sold within the defined period. |
| Second home and above / investors | Up to 50% | At least 50% | Higher purchase tax applies from the first shekel. |
| Foreign residents | Up to 50% (usually 45%-50%) | 50% or more | Depends on the bank, foreign income and income currency. |
| New immigrants (Olim) | Up to 75% as first-home buyers | At least 25% | Subject to Ministry of Housing eligibility and purchase-tax relief. |
Maximum repayment ratio — 50% of disposable income
Bank of Israel rules cap the mortgage payment at 50% of monthly net income minus fixed expenses. In practice banks are comfortable up to roughly 30%-35%; 30%-40% is acceptable but reviewed carefully; above 40% requires an exception approval and carries a higher rate. Example: with a net income of ₪30,000 and no fixed obligations, the regulatory ceiling is ₪15,000, 40% is ₪12,000, 35% is ₪10,500 and 30% is ₪9,000.
At least one third at a fixed rate
No more than two thirds of the mortgage may sit in variable-rate tracks (prime or periodically adjusted).
Maximum term — 30 years
In addition, the mortgage usually must end by age 75-80 of the older borrower, which can shorten the available term.
Prime track — up to 2/3 of the loan
The 33% cap on prime was lifted in 2022, but banks stress-test your payment against rate increases before approving.
Even if you don't meet the stricter Bank of Israel rules — for example due to age, a high repayment ratio, or lack of proven Israeli income — non-bank financing options may still be worth exploring.
Figures reflect Bank of Israel directives current at the time of writing and common bank policy. They are not a substitute for a personal review — actual terms depend on the bank, the borrower profile and the property.
Eligibility tool
Select a property type, enter the price, monthly net income and available equity — and get an instant estimate of financing, repayment ratio and next-step recommendation.
For example loans, credit, child support with more than 18 months remaining — these reduce disposable income used in the calculation.
Limited eligibility — repayment ratio above 40%. Exception approval and a higher rate are likely, or a tailored mix is needed.
Repayment ratio = monthly mortgage payment ÷ (net monthly income minus fixed obligations). Up to 30% green, 30%-40% orange, above 40% warning, above 50% not regular bank financing.
Conclusion: based on your inputs the deal meets Bank of Israel requirements and you can move on to submitting a file to the bank.
The same checklist I go through with every client before we approach a bank: what to prepare, which documents are required, and where most applications lose money. One printable file you can save as a PDF.
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