Israel mortgage calculator for non‑residents

How mortgages work for non-residents

Israeli banks lend to foreign buyers routinely — the loan is secured against the Israeli property, and the big banks run dedicated foreign-resident desks. The difference from a local buyer comes down to one number: loan-to-value. Bank of Israel rules cap lending to a foreign resident at about 50% of the property value, versus roughly 75% for an Israeli resident buying a first home.

In practice that means a non-resident buying a $600,000 apartment should plan for at least $300,000 in cash for the down payment — plus purchase tax and closing costs on top (model those with our purchase-tax calculator). Some banks approve below the cap, especially for buyers without Israeli income, so treat 50% as the best case.

Rates, tracks and terms

Israeli mortgages are usually built from several tracks (מסלולים) — a mix of fixed, prime-linked and CPI-indexed portions. Combined rates in recent years have hovered around 4.5%–5.5%, and terms run up to 30 years (shorter if the borrower is older — banks generally want the loan finished by around age 80–85). The calculator above uses a single blended rate; your bank's offer will be a mix.

Two things worth knowing before you compare with a US mortgage:

• CPI-indexed tracks link your principal to Israeli inflation — the headline rate looks lower, but the balance grows with the index.
• Early-repayment fees can apply on fixed tracks if you refinance when rates have fallen; ask the bank to spell them out.

What the bank will ask for

Banks want the monthly payment to stay under roughly a third to 40% of your net monthly income, verified with pay slips or tax returns (typically two years of returns if you're self-employed). Foreign income is accepted, but some banks discount it. Expect to provide:

• Passport and proof of address in your home country
• Pay slips or tax returns, and several months of bank statements
• An Israeli bank account (needed for the mortgage payments)
• An appraisal (shamut) of the property, ordered via the bank

Approval-in-principle (ishur ikroni) is free, fast, and worth getting before you sign anything — it fixes your real budget.

From loan to full budget

The down payment is only part of the cash you need. A non-resident should also budget for purchase tax (~8% — the largest closing cost), legal fees, and possibly a buyer's agent. Run the full number with the Israel purchase-tax & buying-cost calculator, and see the step-by-step process in our guide to buying property in Israel as a foreigner. For the taxes that come after closing — arnona, rental income, capital gains — see the property-taxes guide for foreign owners.

Ready to look?

Browse live homes from licensed Israeli brokers and ask questions in English on any listing: Jerusalem, Tel Aviv, Netanya, Herzliya, and Haifa. Or find a broker who works with overseas buyers in our agency directory.

This calculator is a general orientation, not financial or mortgage advice. LTV caps, rates and lending policies change and vary by bank — always verify with an Israeli bank or a licensed mortgage advisor before you commit.