How does the mortgage application process work?

Required Documents

To apply for a mortgage in Israel, you’ll need several key documents. If you’re an Israeli resident, banks typically require a copy of your ID card (Teudat Zehut), recent pay stubs, and bank statements from the past three to six months. As a foreign buyer, you’ll need to provide additional documentation, such as proof of assets, tax returns, and a copy of your passport. Property-related documents, including a purchase agreement (if one exists) and land registry extract (Tabu), are also essential. Ensuring everything is accurate and complete can help speed up the approval process.

Preliminary Approval (Ishur Ikroni)

The mortgage process starts with pre-approval, where the bank assesses your financial situation to determine how much you can borrow. An Ishur Ikroni is a preliminary approval letter from the bank confirming the amount you’re eligible to borrow. Once pre-approved, you can purchase a property and submit the sales agreement. The bank will then conduct a property valuation (shamaut), review all documents, and finalize the loan terms.

Pre-approval is a crucial step in home-buying because it reassures sellers and agents that you have the financial backing to complete the purchase. Securing an Ishur Ikroni early can also give you a competitive edge in a fast-moving market.

Timeline

The process, from application to funding, can take a few weeks to several months, depending on how quickly documents are provided and reviewed. Factors like financial complexity, document submission speed, and property valuation can impact the timeline.

Remote Application

You don’t need to be in Israel to secure a mortgage. Many Israeli banks allow remote applications, especially if they have international branches. A mortgage broker with experience in non-resident financing can also help facilitate the process. However, some steps—like signing the final loan agreement—may require your physical presence or a legal representative in Israel.

Since financing options for foreign buyers are more limited, working with a mortgage broker specializing in non-resident cases can help streamline the process and improve your approval chances.

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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