Until what age can I get a mortgage in Israel?

While there is no strict legal age limit for obtaining a mortgage in Israel, most banks require that the loan be fully repaid by the time the borrower reaches 80. As a result, older applicants often face shorter repayment periods and higher monthly payments. For example, a borrower in their mid-60s may only be eligible for a 15-year mortgage instead of the typical 25-30 years.

Life Insurance Requirements

Israeli banks typically require borrowers to have life insurance as a condition for granting a mortgage. This ensures that the loan will be repaid in the event of the borrower’s passing. However, life insurance premiums increase significantly with age, making it more expensive or even difficult to obtain for borrowers over 60. Those with pre-existing health conditions may struggle to get approved for a policy. Some banks may waive this requirement if the borrower has substantial assets or a high down payment, while others may accept alternative financial guarantees.

Mortgage Approval for Older Borrowers

Banks assess several factors when reviewing a mortgage application from an older borrower. Pension income, investments, and overall financial stability play a crucial role in determining eligibility. A lower loan-to-value ratio, meaning a larger down payment, can improve the chances of approval. Some banks may require a younger co-signer, such as a child or family member, to share responsibility for the loan.

Given the complexities of securing a mortgage later in life, working with a mortgage broker or financial advisor can help identify the best solutions while considering the impact of life insurance costs and repayment terms.

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.

Share This