How much can I borrow in Israel?

Your qualification depends on your income, financial stability, and residency status. The bank will also consider your current debts when determining the loan amount.

Loan-to-Value (LTV) Ratio

The amount you can borrow depends on your residency status and the type of property:

  • Israeli residents buying their first home can finance up to 75% of the property’s value.
  • Non-residents and buyers of a second home or investment property are generally limited to 50% financing.

Income and Affordability Requirements

Banks in Israel evaluate your income and financial stability to ensure affordability. Typically, your monthly mortgage payment cannot exceed 30%–40% of your gross monthly income.

To determine your borrowing capacity, an Ishur Ikroni, or preliminary approval letter issued by the bank, is essential, confirming the mortgage amount you qualify for.

This guide is intended to provide the reader with general information and not to serve as legal or other professional advice. Readers are advised to obtain advice from qualified professionals before entering into any real estate transaction.

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