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Lending terms

Interest rates for mortgages in Israel are 4–5% per annum, while down payments amount to 20–40%. Mortgage maturity terms range from 15–28 years.

Outside of commercial bank loans, Israel offers two types of mortgages backed by the government. There is the mashkanta with a 28-year maturity term and collateralised by a property pledge. It is available to borrowers who did not own property as of 1 June 1972.

There is also a local subsidy available for both Israelis and foreign citizens to purchase property in certain areas that are generally not industrially developed and lack mature infrastructure, e.g. subsidised housing purchases in Ma'ale Adumim in the Judean Desert, near Jerusalem. However, these subsidies are not granted for houses or flats in Tel Aviv-Yafo.


Mortgage applications in Israel require the following documents:

  • applicant's passport;
  • guarantors' passports (if they are needed);
  • tax returns for two previous years proving annual income;
  • seller's proof of ownership for the property.

All the documents should be translated into Hebrew or English and notarised.