Mortgages in Israel

Israeli and non-Israeli citizens are able to obtain mortgages from commercial banks in Israel. Beyond commercial loans, Israel, Israel offers two types of mortgages, both backed by the government. One of them — mashkanta — is available to citizens who didn't own residential property as of 1 June 1972. The other type — the so-called local subsidy — is available to both Israelis and foreign citizens who wish to purchase property in certain areas that are generally not industrially developed and lack mature infrastructure.

Documents

Prospective borrowers need to submit the following documents to Israeli banks:

• passport
• guarantors' passports (if needed)
• tax returns for the two previous years proving annual income
• extract from the Land Register (issued no less than six weeks in advance)
• property documents.

All the papers must be drawn up in Hebrew or English and notarised.

Loan applications usually take 1-2 weeks for approval.

Additional costs

Additional mortgage costs in Israel typically don’t exceed 1,000 Israeli New Shekels (ILS*) ($300).

*1ILS=0.26 USD (as of early December 2016)