Complete guide to getting a mortgage in Israel: types, rates, requirements and tips.
Types of Mortgage in Israel
Israeli mortgages (mashkanta, משכנתא) come in several track types: Prime-linked variable rate, fixed unlinked, CPI-linked fixed, and foreign currency linked. Most borrowers use a mix of 2-3 tracks to balance risk and cost.
Eligibility and Requirements
Banks require a minimum 25% down payment (30% for investment properties). Maximum loan-to-value is 75% for first homes, 70% for upgrades, and 50% for investments. The monthly payment should not exceed 33-40% of net household income.
Getting the Best Rate
Always get quotes from at least 3 banks. Consider using a mortgage broker (yoshev rosh) who can negotiate on your behalf. Timing matters — rates fluctuate with Bank of Israel decisions. Our free mortgage simulator can help you compare scenarios.
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