General information, not legal or tax advice. Rules and rates change and depend on your circumstances: check the official sources linked on this page and take advice from an Israeli lawyer and tax adviser before you act.
How much you can borrow
Bank of Israel Directive 329 caps the loan as a share of the property’s value: up to 75% for a sole home, up to 70% for a replacement home and up to 50% for an investment home. According to the Banking Supervision Department, a foreign resident’s purchase counts as an investment home, so a mortgage for a foreign resident is capped at 50% of the property’s value. The bank may lend less.
Source: Bank of Israel, Proper Conduct of Banking Business Directive 329, updated 30 June 2026 (Hebrew, PDF) (checked 18 October 2026) · Bank of Israel, Banking Supervision questions and answers on Directive 329 (Hebrew, PDF) (checked 18 October 2026)
Israelis living abroad
The directive defines a sole and a replacement home for an Israeli citizen. An Israeli citizen living abroad may qualify for those limits, but it depends on the definitions and on the bank. Ask the bank and your lawyer before you plan around 75%.
Source: Bank of Israel, Proper Conduct of Banking Business Directive 329, updated 30 June 2026 (Hebrew, PDF) (checked 18 October 2026)
What the bank will ask for
Each bank sets its own document list. Expect to provide identification, proof of income, bank statements and the source of your down payment, and to pay for a valuation by the bank’s appraiser and for life and building insurance. For foreign residents, the Banking Supervision Department allows banks to rely on signed tax returns filed abroad as proof of income. Prepare documents early, with translations where needed.
Source: Bank of Israel, Banking Supervision questions and answers on Directive 329 (Hebrew, PDF) (checked 18 October 2026)
New immigrants (olim)
Olim may be eligible for a housing loan on special terms in addition to a bank mortgage, subject to eligibility conditions. The Ministry of Aliyah and Integration and Nefesh B’Nefesh publish the details; check your eligibility before you go to the bank.
Source: Nefesh B’Nefesh, mortgage benefits for olim (checked 18 October 2026) · Ministry of Aliyah and Integration, Guide for the New Immigrant (PDF) (checked 18 October 2026)
Currency risk
A shekel mortgage repaid from dollar, pound or euro income exposes you to the exchange rate for the life of the loan. Some buyers finance part of the purchase at home, and some Israeli banks offer foreign-currency-linked tracks. This is a financial decision; discuss it with your bank and financial adviser.
Get approval in principle first
The seller expects payment on the dates in the contract, even if the bank has not yet approved the mortgage. Get a mortgage approval in principle (ishur ekroni) before you sign, and make sure the payment dates in the contract leave the bank time to release the funds.