Israeli government allocates NIS 230 million this year to assist immigrant homebuyers and other special groups
Posted on 18. Feb, 2010 by Buy-It In Israel Staff in Israel Real Estate, Mortgages
The Israeli Housing and Construction Ministry together with the Finance Ministry this week extended the government’s housing assistance and benefit package for 2010 allocated to special groups of the population including new immigrants, residents living along the confrontation lines and other minority groups with goal of encouraging these groups to buy property in Israel.
The government said it will allocate a budget of NIS 230 million in 2010 for the provision of grants and benefits in housing.
“Government assistance will help minority groups in their ability to purchase a home, advance their way of life and improve their living standard,” said Israel’s Housing and Construction Minister Ariel Atias and Finance Minister Yuval Steinitz. “The support of these groups in the population will help narrow social gaps and strengthen the periphery.”
The government will provide assistance for buying a home according to five criteria. Under the terms of the criteria new immigrants, who are not homeowners, will be eligible to discounts on mortgages in Israel according to the following parameters:
- Number of years resident in Israel and family status (immigrant families, single-mother families, single immigrants). Special mortgages for new immigrants are granted for up to 10 years after your Aliyah and provided as a loan with low interest rates for a certain amount. The amount is based on a calculation including the number of siblings, number of children, years of marriage and army service. The eligible new immigrant or couple receives points for each of these factors, the total sum being calculated as a result of these points. Estimates on the amount of governent loan, for which you qualify, can be obtained by visiting a local bank.
- Jewish refugees immigrating from Syria, Yemen and Iran will be eligible for special housing assistance depending on their socio-economic status, geographical location of the place the home is bought and family size.
- Government assistance in housing will be given to residents located in confrontation line communities who will be eligible for loans at an interest rate of 4.5 percent for a duration of 20 years in addition to general loan entitlements according determined by their personal status. For residents of Kiryat Shmona an additional loan of NIS 60,000 will be given and in the remainder of communities along the confrontation line a loan of NIS 48,000 will be given. Elgibility for additional assistance will be for residents without housing, veteran immigrants and home owners who are entitled to assistance because of financial difficulties, housing shortage or health problems.
- Immigrants from Ethiopia who are part of the Absorption Center program will be entitled to housing assistance depending on the number of years they have been in Israel since making Aliyah and the geographical location of the place the home is bought. The majority or 85 percent of the assistance will be provided in form of grants and the remainder in form of loan conditions linked to a fixed interest rate of 4 percent for the duration of 28 years.
- Finally, immigrant families from Ethiopia will also be eleigible for housing assistance depending on the location of the home for purchase and family size. Assistance for home purchase will be provided in the form of loans at an interest rate of 4 percent for a period of 28 years.
© Copyright 2010.
Related Articles:
