Israel Mortgage Guide for Foreigners
Israel Mortgage Guide for Foreign Buyers
Everything you need to know about getting a Mashkanta — even as a non-resident
Official market data — Israel (CBS, 2026)
National average: ₪2,392,000 in H1 2026 (+3.9% vs. H1 2025); the CBS housing price index for February–March 2026 was down 1.2% year on year
Purchase tax for a foreign resident or investor: 8% up to ₪6,055,070 and 10% above; bank financing for non-residents is capped at 50% of the property value (up to 75% for an Israeli resident buying a single home)
Source: Israel Central Bureau of Statistics — average apartment prices for the first half of 2026 (published 15 September 2026), the housing price index (published 15 May 2026) and the Q1 2026 rent survey. These are city-wide averages; the actual price depends on the neighborhood, size, floor and condition. Before any decision we show you real transactions recorded with the Israel Tax Authority in the area you are considering.
The Israeli Mortgage (Mashkanta) System
Israel's mortgage system is well-developed and accessible to foreign buyers. Non-residents can typically borrow up to 50% of the property value (LTV), compared to 75% for Israeli residents on their first home. Interest rates are competitive, and multiple loan track options allow customization.
Major banks offering mortgages to non-residents: Bank Leumi, Bank Hapoalim, Mizrahi Tefahot, Discount Bank, and Bank Yahav. Each has a mortgage department (Mashkanatot) with English-speaking advisors. Some banks have specialized international divisions.
Mortgage Tracks Explained
Israeli mortgages combine multiple tracks (channels) in one loan. Common tracks: Fixed CPI-linked (Tzamud Kavua): Fixed rate linked to inflation index. Stable and predictable. Variable CPI-linked (Tzamud Mishtana): Rate adjusts every 5 years. Lower initial rate. Fixed Shekel (Shekel Kavua Lo Tzamud): Fixed rate, not inflation-linked. Full certainty. Variable Shekel (Prime): Linked to Bank of Israel prime rate. Lowest initial rate but most volatile.
Bank of Israel regulations require diversification across at least 2 tracks. Maximum term: 30 years. Most borrowers take 15-25 year mortgages. Monthly payments cannot exceed 40% of documented income.
Requirements for Non-Residents
The bank will also appraise the property. Processing time: 2-6 weeks from application to approval. We work with mortgage brokers who specialize in non-resident applications and can navigate the process efficiently.
Advantages
Available to non-residents
Multiple track options
Competitive rates
English-speaking advisors available
Tax-deductible interest on rentals
Points to consider
50% LTV maximum for non-residents
Extensive documentation
CPI-linkage adds inflation risk
Process can be slow
Exchange rate risk
What's the maximum mortgage a non-resident can get?
Non-residents can borrow up to 50% of the property value (LTV). For investment properties, this applies to both residents and non-residents. First-time resident buyers can borrow up to 75%. The minimum down payment is therefore 50% for foreign buyers.
What interest rates can I expect?
Rates vary by track and market conditions. As of recent data: Fixed CPI-linked: 2.5-4%, Variable CPI-linked: 2-3.5%, Fixed Shekel: 4-6%, Prime-linked: Prime +/- 0.5% (Prime is typically 4-6%). A good mortgage broker can negotiate significantly better terms.
Can I get a mortgage in a foreign currency?
Foreign currency mortgages are no longer standard in Israel. Most mortgages are in Israeli Shekels (NIS). However, your income documentation can be in foreign currency, and banks will convert based on exchange rates. Some banks offer dollar-denominated sub-tracks for specific situations.
Get Mortgage GuidanceFree mortgage consultation with our specialist brokersPersonal consultation: +972-53-658-4252 · leave your details and we will get back to you