Do I need a home appraisal for my mortgage in Israel?

If you’re taking out a mortgage for a pre-owned home in Israel, the bank usually requires a certified property valuation to determine the loan-to-value (LTV) ratio. This ensures that the loan amount does not exceed the property’s market value, protecting both you and the lender.

You’ll need the purchase agreement, proof of ownership, and property details, such as the official permits and registered location, to complete the valuation. The bank will either appoint an appraiser or provide you with a list of approved appraisers.

Remember that if there are illegal additions or unapproved extensions to the property, they will not be included in the appraiser’s valuation. This could result in a lower appraised value, affecting the amount you can borrow. If the appraisal comes in lower than the purchase price, you may need to renegotiate, increase your down payment, or seek alternative financing.

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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