Mortgages in Israel for
foreign residents.
Personal guidance for Americans, Brits, and Jews abroad buying property in Israel. From pre-approval to funding — navigated in English, closed in Israel.
Six realities that change the math
Foreign buyers face a different rulebook than Israelis. Before you wire a single dollar, understand these six.
50% max LTV
Bank of Israel Directive 329 caps non-resident financing at half the purchase price. Plan on 50%+ liquid equity — down payment and closing costs can't be funded by the mortgage.
Purchase tax from the first shekel
Non-residents pay 8% up to ~6M NIS and 10% above. No first-home exemption — even if it's your only home worldwide. Budget this on top of the price.
Oleh Hadash refund pathway
Make Aliyah within two years of purchase and you can retroactively reclaim the difference — Israeli first-home brackets applied, refund issued with interest and indexation.
AML & source of funds
Expect 6–10 weeks of underwriting. Banks require a full paper trail for every dollar — tax returns, property sale proofs, inheritance orders. We prepare the file before you apply.
No financing contingency
Israeli contracts don't give you a loan-fell-through escape clause. Signing before your pre-approval is final exposes you to a 10% breach penalty. Pre-approval first, signature second — always.
Life insurance + age-80 cap
Every Israeli lender requires a life insurance policy assigned to them, plus property insurance. The loan term must end before the borrower turns 80 — this compresses amortization and raises monthly payments for older buyers.
Six steps from your couch to keys
Most foreign-resident mortgages take 6 to 10 weeks from the first call to funded. Here's what each stage looks like.
Discovery call
30 minutes on Zoom. We walk through the property, your income structure, currency of earning, timeline, and whether Aliyah is on the horizon.
Document pack
I send a tailored checklist: W-2/1040, P60, bank statements, CPA letters, proof of funds, property sale deeds. Translations and apostilles where needed — we coordinate these up front.
Pre-approval across banks
I approach multiple Israeli lenders (Hapoalim, Leumi, Mizrahi, Discount, Jerusalem) in parallel. Each returns a pre-approval with their best mix. We compare and choose.
Contract review with your Israeli attorney
You don't sign until the pre-approval is in hand and your attorney has vetted the contract — especially payment schedule, Construction Input Index clauses, and warranty language.
Funding & wire coordination
Funds flow from your name-only foreign account through the bank's compliance review into a trust account, then drawn in stages per the contract. We sequence draws to minimize index exposure.
Post-funding support
I stay available after closing — for refinancing when rates move, for Aliyah tax refund paperwork, and for the next property.
Engineered for buyers who earn in foreign currency
Israeli mortgages are a blend of tracks — not a single 30-year fix. The Bank of Israel mandates at least one-third fixed and caps variable exposure at two-thirds. Your mix is where currency hedging, prepayment flexibility, and cash flow meet.
Prime (NIS, floating)
Pegged to the Bank of Israel rate plus a bank margin. Moves monthly.
Fixed NIS, not CPI-linked
Locked nominal rate for the full term. Principal doesn't index.
Fixed NIS, CPI-linked
Rate fixed, but the principal indexes to Israeli inflation each month.
Foreign-currency track (USD / EUR / GBP)
Loan denominated in your home currency, priced off SOFR, Euribor, or SONIA + bank margin.
Buying new-build from a developer?
Under the updated Israeli Sale Law, only 40% of the unpaid balance on a new-build contract can be linked to the Construction Input Index (Madad Tsumot Habniya). In a 4M NIS deal with 20% paid upfront and index at +3% over the build period, that caps your index exposure at roughly 48,000 NIS — vs ~96,000 NIS under the old rules. We time mortgage draws to minimize what ever reaches the index.
Families who already have their keys
A growing gallery — shared with permission. More stories coming soon.
Questions foreign buyers ask
Ready to get started?
Leave your details and I'll reach out to schedule a free discovery call. If it's a fit — we move forward. If not, I'll say so honestly.
I reply within one business day · Serving foreign residents worldwide